Abu Dhabi's energy giants team up with Microsoft to accelerate AI-driven, sustainable energy innovations

Ahead of ADIPEC 2025, a pretty big development has just been announced. ADNOC, Masdar, XRG, and Microsoft are teaming up in a strategic partnership aimed at speeding up the deployment of AI throughout ADNOC’s vast value chain and developing next-gen energy solutions. The partnership also strives to support Microsoft’s growing global AI and data center infrastructure with sustainable energy sources, further cementing Abu Dhabi’s reputation as a global hub for energy innovation.

This news broke during the ENACT Majlis in Abu Dhabi—a gathering that pulls together top leaders from energy, tech, investment, and government sectors from around the world. The shared goal? To push forward integrated AI and energy solutions. Under this alliance, ADNOC and Microsoft will work together to develop and deploy AI agents across ADNOC’s operations. The goal is to enable autonomous decision-making, cut emissions, and boost operational efficiency. Microsoft will also bring its advanced AI tools and provide comprehensive upskilling programs for ADNOC’s staff—really aiming to foster deeper AI integration and technological capacity within the energy industry.

It’s worth noting that this isn’t the first time ADNOC and Microsoft have teamed up. At ADIPEC 2024, they, along with Masdar, signed a Strategic Collaboration Agreement. That earlier deal focused on advancing AI and low-carbon initiatives—like using renewable energy from Masdar to power Microsoft’s data centers, and harnessing AI for carbon capture, low-carbon ammonia, and hydrogen projects. These efforts supported ADNOC’s ambitious goals—namely reaching Net Zero by 2045 and reducing methane emissions near zero by 2030—aligning well with broader climate and sustainability efforts.

Fast forward to 2025, and things are getting deeper. XRG, ADNOC’s tech arm, is now involved to help drive the dual transformation of energy systems and AI infrastructure. Sultan Ahmed Al Jaber—UAE’s Minister of Industry and Advanced Technology, ADNOC’s managing director and group CEO, as well as chairman of Masdar and XRG—highlighted the multi-layered nature of this partnership during his speech at the ENACT Majlis. He said, “As AI continues to reshape how value is created and enhanced across industries, ADNOC, Masdar and XRG are actually embedding AI into every part of what we do, while also working on the energy systems that will power AI itself. This partnership unlocks all sorts of new opportunities—fueling the future of AI, boosting performance, and future-proofing our business.”

Brad Smith, Microsoft’s vice-chair and president, echoed these ideas, emphasizing the importance of cross-sector collaboration. “Honestly,” he said, “no single company or industry can handle this alone. Accelerating the shift to a more sustainable, secure, and inclusive energy future needs deep collaboration—not just within industries but across governments, tech companies, and innovators everywhere.”

ADNOC’s leadership in AI is already pretty clear. Since November 2023, it became the first energy company to implement generative AI enterprise-wide using Microsoft Copilot—which led to productivity gains of over 70,000 hours each month. Plus, more than 40,000 ADNOC employees have gone through AI training programs, showing how committed the company is to building AI skills across its ranks.

The partnership also pulls insights from the 2025 “Powering Possible” report—a joint effort by ADNOC and Microsoft based on input from over 850 experts globally. The report highlights how AI is transforming energy systems—from predictive maintenance and emissions monitoring to smarter grid management and energy optimization. This alliance aims to expand those innovations further by creating a joint ecosystem for incubating transformative solutions that the energy sector really needs for the future.

And, of course, the timing couldn’t be better—just before ADIPEC 2025 in Abu Dhabi, which is basically the biggest energy industry event worldwide. The event attracts thousands of leaders, policymakers, and innovators shaping the future of energy. With this new partnership, ADNOC, Microsoft, Masdar, and XRG are sending a clear message about how AI and clean energy can come together to boost resilience, foster innovation, and promote sustainability.

Looking ahead, this multi-faceted alliance is expected to not only improve ADNOC’s operational efficiency and environmental impact but also help power Microsoft’s data centers more sustainably. Masdar’s renewable energy, combined with AI-driven optimization, will fuel Microsoft’s global infrastructure, addressing the rising computational demands of AI in a way that’s environmentally friendly.

Plus, this collaboration reflects broader UAE priorities—integrating cutting-edge digital tech into energy systems to hit climate targets and diversify the economy. The ENACT Majlis, which brought together over 100 global leaders, focused on ensuring reliable energy supply to meet the surging demand driven by AI growth—emphasizing the crucial partnership between energy and tech sectors.

All in all, this ADNOC-Masdar-XRG-Microsoft alliance marks a major step towards embedding AI into operational workflows and creating low-carbon energy solutions to fuel the next chapter of AI development. It’s a clear example of how AI and clean energy are intertwined right now, with Abu Dhabi positioning itself as a key player in the worldwide transition towards a sustainable and tech-advanced energy future.

Source: Noah Wire Services