ADNOC & Microsoft: Powering Renewable Energy AI Data Centres

As artificial intelligence becomes central to energy infrastructure, Abu Dhabi National Oil Company (ADNOC) has joined forces with Microsoft and renewable developer Masdar to power AI data centres using cleaner energy.

While oil and gas firms have traditionally faced scrutiny over sustainability, ADNOC positions itself differently, targeting the intersection of energy transition, AI demand and global south development.

The partnership is unveiled at the Abu Dhabi International Petroleum Exhibition and Conference, marking a strategic step for the United Arab Emirates’ state-owned oil firm.

Central to the collaboration is the intention to reduce emissions by powering data centres with renewable energy, while also using AI to optimise ADNOC’s own energy-intensive operations.

Cleaner power for AI’s energy appetite

Energy consumption at data centres has grown rapidly with the rise of artificial intelligence.

AI models, particularly those using machine learning (ML), require high computational capacity, which results in heavier electricity demands.

As this demand scales, ADNOC and Microsoft are responding by powering AI data infrastructure with renewables supplied by Masdar.

Masdar, officially the Abu Dhabi Future Energy Company, is a renewable energy firm in which ADNOC holds a stake.

The agreement will assess how Masdar’s renewable output can support Microsoft’s data needs, aiming to keep carbon levels low while meeting AI workloads.

Alongside this, the companies are working to incorporate AI into the energy mix itself.

By deploying AI systems within carbon capture and storage (CCS) projects—technology that removes CO2 from industrial activities and stores it underground—ADNOC intends to cut emissions at source.

AI is also being used to support facilities producing low-carbon hydrogen and ammonia.

This dual strategy, cleaner energy generation and AI-enabled emissions reduction, extends into ADNOC’s core oil and gas activities.

Microsoft’s systems will be integrated into ADNOC’s operations to improve efficiency and lower methane emissions.

Methane is a potent greenhouse gas, and ADNOC has pledged to bring emissions near zero by 2030 in line with the Oil & Gas Decarbonisation Charter.

ADNOC’s AI tools also have a role in environmental tracking.

They are already being used to monitor biodiversity and assess ecological impacts across operations.

AI meets energy ambition

Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group Chief Executive, as well as Masdar’s Chairman and the UAE’s Minister of Industry and Advanced Technology, sets out the strategic rationale.

He explains how the partnership addresses “three megatrends” shaping today’s energy and technology discussions: the development of the global south, the transformation of energy systems and the rapid rise 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,” he says.

“It is also creating a power surge that nobody accounted for just 18 months ago.”

This perspective feeds into the Powering Possible: AI and Energy for a Sustainable Future report, produced jointly by ADNOC, Masdar and Microsoft.

The study reviews how AI can support lower-carbon energy systems while ensuring that growing AI power needs are met efficiently.

Brad Smith, Microsoft’s Vice Chair and President, underlines the point: “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, optimise transmission and expand energy access to communities around the world.”

He adds the agreement helps Microsoft “meet the AI moment while transitioning to a more sustainable economy.”

Results and returns from AI integration

ADNOC’s AI strategy has already delivered returns.

Between 2022 and 2023, the company reports that AI applications helped prevent one million tonnes of CO2 from being released, while also generating US$500m in value across 2023.

These figures support ADNOC’s target of reaching net-zero emissions by 2045.

To meet that goal, the company needs to cut both direct emissions from its operations and indirect emissions related to the energy it consumes.

AI is being applied in upstream production, refining and petrochemical processing to achieve this.

Masdar’s Chief Executive, Mohamed Jameel Al Ramahi, says the partnership shows how AI can “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 centres that will power the AI future.”

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