In a landmark move to reshape the future of energy and artificial intelligence (AI), Adnoc, Masdar, XRG, and Microsoft have announced a strategic alliance to accelerate the deployment of AI across the energy sector and to develop sustainable energy solutions for Microsoft's expanding global AI and data center infrastructure.

Unveiled at the ENACT Majlis in Abu Dhabi, the agreement brings together the industrial strength of Adnoc, the clean energy expertise of Masdar and XRG, and Microsoft's digital innovation to address two of the world's most pressing challenges: decarbonizing energy systems and powering the exponential growth of AI.

At the heart of the collaboration is a commitment to co-develop and deploy AI agents across Adnoc's value chain. These AI-driven systems aim to enhance operational efficiency, enable autonomous operations, and reduce emissions. Microsoft will also provide advanced AI tools and training programs to upskill Adnoc's workforce, while both companies explore the creation of a joint innovation ecosystem to pioneer transformative energy solutions.

“As AI continues to reshape how value is created and enhanced across industries, Adnoc, Masdar and XRG are not only embedding AI into every layer of our operations - we are also advancing the energy systems that will power AI itself,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, Executive Chairman of XRG, and Chairman of Masdar.

Adnoc has already made significant strides in AI adoption. In November 2023, it became the first energy company to implement generative AI enterprise-wide through Microsoft Copilot. Since then, over 40,000 employees have undergone AI training, with usage rates exceeding 90% and productivity gains surpassing 70,000 hours per month.

Microsoft Vice Chair and President Brad Smith emphasized the importance of cross-sector collaboration:“No single company or industry can meet this moment alone. Accelerating the transition to a more sustainable, secure, and inclusive energy future requires deep collaboration between governments, energy providers, technology companies, and innovators everywhere.”

The partnership also supports Microsoft's global AI and data center expansion through the development of next-generation energy and infrastructure solutions, powered by clean energy from Masdar and XRG. Masdar, a global leader in renewable energy with a portfolio exceeding 51 GW, aims to scale up to 100 GW by 2030.

Together, the four organizations are positioning Abu Dhabi as a global hub for energy innovation, setting a new benchmark for how AI and clean energy can work hand-in-hand to drive sustainable industrial transformation.

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