Strategic collaboration agreement to evaluate powering Microsoft’s data centers with renewable energy and using AI to advance decarbonization projects

Collaboration will explore opportunities to accelerate AI deployment across ADNOC’s operations to enhance efficiencies and minimize emissions

Agreement builds on recent co-authored report – “Powering Possible” that highlights how AI is critical for accelerating the energy transformation

ADNOC and Abu Dhabi Future Energy Company (Masdar) announced  the signing of a Strategic Collaboration Agreement (SCA) with Microsoft on a range of artificial intelligence (AI) and low-carbon initiatives in the UAE and globally aimed at decarbonizing the energy system of today and enabling a sustainable energy system for the future. The announcement was made at ADIPEC which is currently taking place in Abu Dhabi.

As part of the SCA, the companies will evaluate opportunities to power Microsoft’s data centers with renewable energy through Abu Dhabi Future Energy Company (Masdar), which ADNOC is a shareholder in. They will also explore opportunities to use AI to advance carbon capture and storage projects as well as low-carbon ammonia and hydrogen projects.

Furthermore, the SCA will explore opportunities to accelerate AI deployment across ADNOC’s operations to enhance efficiencies, drive methane reduction initiatives aligned to the Oil & Gas Decarbonization Charter to achieve near zero methane by 2030, minimize emissions and strengthen biodiversity monitoring to better protect the environment.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of Masdar, said: “We are at a pivotal moment for human progress driven by three megatrends, the rise of the global south, the accelerated energy transformation, and the rapid growth of AI. AI is an era-defining innovation that is altering the pace of change itself – resetting the boundaries of productivity and the possibilities of progress. It is also creating a power surge that nobody accounted for just 18 months ago. By collaborating to solve AI’s near-term challenges, we can also unlock AI’s long-term benefits across the energy value chain – helping to secure a sustainable and prosperous future for generations to come.”

The agreement follows the release of the Powering Possible: AI and Energy for a Sustainable Future report, co-authored by ADNOC, Masdar, and Microsoft. This report and the ENACT Majlis, a CEO gathering of over 70 world leaders in technology, energy and investment held on the eve of ADIPEC, call for greater collaboration between the technology and energy sectors to harness the power of AI to accelerate the energy transition.

Brad Smith, Vice Chair and President, Microsoft said: “This new era calls on us to do two things at once: meet the AI moment while transitioning to a more sustainable economy. In a world that will need more electricity, not less, it’s imperative that we generate more carbon-free energy to power AI and use that very same technology to increase capacity, optimize transmission, and expand energy access to communities around the world. This isn’t a journey any of us can take alone. It requires working across technology, energy, science, and policy sectors to find solutions and accelerate our collective progress.”

Mohamed Jameel Al Ramahi, CEO of Masdar, said: “AI will play a key role in accelerating the energy transition. We look forward to working with ADNOC, Microsoft and other key partners, to help AI achieve its potential by delivering clean energy to the data centers that will power the AI future.”

AI solutions are enabling ADNOC’s Net Zero by 2045 ambition and its target to achieve near-zero methane emissions by 2030. Between 2022 and 2023, the company’s AI tools abated 1 million tonnes of carbon dioxide (CO2) and generated $500 million (AED1.84 billion) in value in 2023.