UAE leads global charge as AI redefines energy demand and transformation

31/10/2025 06:22 AST

The UAE is positioning itself at the forefront of a seismic shift in global energy systems, as artificial intelligence (AI) rapidly transforms both energy consumption and production. Spearheaded by Adnoc and supported by strategic partnerships with Microsoft, AIQ, and other global tech leaders, the UAE is not only adapting to AI's growing energy appetite but actively shaping its trajectory.

The newly released Powering Possible 2025 report, a joint effort by Adnoc and Microsoft, reveals that nearly 88 per cent of surveyed global energy and technology leaders believe scaling AI is essential to achieving energy transformation. The UAE's proactive stance is evident in its national strategy, which views AI as a cornerstone of future readiness. "Under the UAE's leadership, Artificial Intelligence stands today as a defining force of national progress," said Omar Sultan Al Olama, Minister of State for AI, Digital Economy, and Remote Work Applications.

Adnoc's own transformation is emblematic of this shift. From predictive maintenance to AI-optimized grids, the company is embedding AI across its operations, driving measurable gains in reliability, efficiency, and sustainability. Its agentic AI platform, ENERGY ai, developed with AIQ, G42, and Microsoft, is automating complex tasks like seismic analysis and emissions forecasting, accelerating decision-making and enhancing operational insights.'

Sultan Ahmed Al Jaber, Adnoc CEO and UAE Minister of Industry and Advanced Technology, emphasized, "Today, the energy sector is no longer exploring the potential of AI, it is delivering on it. Across the value chain, we are seeing real-world deployments that are improving reliability, unlocking new efficiencies and driving sustainability. From predictive maintenance in operations to AI-optimized grids integrating renewables at scale, the transformation is underway. AI is no longer a future promise for the energy sector; it's delivering real impact today. The next step is clear: move faster, together."

But the implications go far beyond operational efficiency. AI is now a major energy consumer, with next-generation data centers demanding up to 5 GW of continuous power - comparable to heavy industry. This dual transformation - AI for energy and energy for AI - is reshaping electricity demand and supply. Data centers, once niche IT infrastructure, are now central to energy planning, requiring smarter grid investments and carbon-free power sources.

The report highlights that 73 per cent of companies are deploying AI widely, and one in five have already integrated agentic AI. Yet, challenges persist. Cybersecurity has overtaken cost as the top barrier to adoption (49 per cent), followed by data quality (45 per cent) and talent shortages (39 per cent). These hurdles underscore the need for robust governance, cross-sector collaboration, and accelerated investment in infrastructure and skills.

Masdar, another UAE energy leader, showcases AI's potential in renewable integration. Its AI-driven systems in Masdar City have reduced energy consumption by 38 per cent, optimized autonomous transport, and enhanced grid resilience. These results offer a replicable blueprint for sustainable urban design powered by AI.

Globally, energy companies are leveraging AI for emissions management, with applications in methane detection, flare reduction, and carbon capture. Adnoc's AI-powered flare monitoring and Chevron's methane tracking are already delivering measurable environmental benefits.

The convergence of AI and energy is no longer theoretical - it's a shared transformation. As Brad Smith, Vice Chair and President of Microsoft, noted, "Meeting the demands of both the AI era and energy transition will require more than ambition - it will take strong partnerships and innovation."

The Powering Possible 2025 report, released ahead of the ENACT Majlis in Abu Dhabi, serves as both a progress tracker and a roadmap. It calls for urgent action: scaling proven solutions, aligning policy with innovation, and investing in talent and infrastructure. The message is clear - AI and energy must evolve together to meet rising demand and achieve net-zero goals.

Khaleej Times