Abu Dhabi Plans Dh250 Billion Energy Investment As AI Demand Drives Power Needs

(MENAFN- Khaleej Times) Abu Dhabi is advancing a Dh250 billion investment programme in energy and water infrastructure between 2025 and 2035, as the emirate prepares for rising electricity demand driven by artificial intelligence, advanced manufacturing and industrial expansion, a senior official said on Monday.

Speaking at KEZAD Connect 2026, Eng. Ahmed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, said the emirate aims to generate 60 per cent of its electricity from clean energy sources while ensuring infrastructure keeps pace with future economic growth.

Recommended For You

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

He said expanding AI infrastructure in Abu Dhabi is expected to require approximately two gigawatts of power in the first phase, rising to five gigawatts in the second phase.

AI infrastructure drives electricity demand

Al Rumaithi said the rapid expansion of artificial intelligence and data centres is creating significant pressure on electricity systems worldwide.

He noted that global electricity demand from data centres increased by 17 per cent in 2025, while demand associated with AI-focused applications grew by 50 per cent.

Although AI is often viewed as a digital technology, he stressed that the infrastructure supporting it requires substantial physical resources, particularly electricity.

He said Abu Dhabi must prepare its energy infrastructure not only for current consumption but also for the scale of future industrial and technological ambitions.

Dh250 billion investment to support clean energy transition

Al Rumaithi said Abu Dhabi's planned Dh250 billion investment in energy and water infrastructure between 2025 and 2035 is intended to support its long-term sustainability and economic development objectives.

The emirate is targeting 60 per cent electricity generation from clean energy sources, a commitment he described as an important part of its response to climate challenges.

He added that Abu Dhabi is progressing ahead of schedule in implementing its clean energy plans.

Clean energy certificates to support businesses

Al Rumaithi also highlighted Abu Dhabi's Clean Energy Certificates scheme, which allows businesses to demonstrate their commitment to sustainability by documenting electricity consumption backed by clean energy generation.

He said the scheme offers industrial companies and investors an opportunity to strengthen their sustainability credentials and improve their competitiveness in international markets.

KEZAD contributes Dh158 billion to Abu Dhabi economy

Earlier, Abdullah Al Hameli, CEO of Economic Cities and Free Zones at AD Ports Group, said the group's economic cities and free zones cluster contributes more than Dh158 billion to Abu Dhabi's economy, representing almost a quarter of the emirate's non-oil GDP.

He added that the cluster supports more than 372,000 jobs, reflecting the scale of industrial investment and business activity within its ecosystem.

Al Hameli said KEZAD is now home to more than 2,300 investors representing industries and businesses from around the world.

More than 80 speakers at KEZAD Connect 2026

Al Hameli said this year's KEZAD Connect has expanded to include more than 80 speakers participating in over 15 panel discussions and special sessions across two days.

The event, held under the theme“Building the Future of Industry”, brings together government officials, business leaders, investors and industrial companies to explore opportunities in advanced manufacturing, technology, innovation and global trade.

He said the event aims to strengthen relationships between businesses and create new opportunities for collaboration.

Infrastructure key to Abu Dhabi's industrial ambitions

Al Rumaithi stressed that reliable energy and water infrastructure is essential to attracting investment and strengthening industrial competitiveness.

He said energy reliability directly influences investor confidence, while efficiency helps companies remain competitive.

The Department of Energy's priority, he added, is to ensure that energy and water systems enable industrial development rather than constrain it.

He emphasised that Abu Dhabi's next phase of economic growth will depend not only on factories and industrial facilities but also on the infrastructure, partnerships and long-term planning that allow businesses to expand and compete internationally.

ALSO READ

AI drives up global energy investment needs to $4 trillion annually, industry leaders tell WEF UAE gas demand to rise 50% in next 5 years, boosting investment opportunities Abu Dhabi to invest Dh240 billion in infrastructure over the next 7 to 10 years

MENAFN12102026000049011007ID1111796810