Abu Dhabi National Oil Company (ADNOC) and Masdar have signed a strategic collaboration agreement with Microsoft on various artificial intelligence (AI) and low carbon initiatives in the UAE and worldwide aimed at decarbonizing the AI and data center sectors.
As part of the agreement, the companies will seek opportunities to power Microsoft’s data centers with renewable energy through Masdar's renewable energy portfolio.
The partners will also explore using AI to advance carbon capture, storage technologies, and low carbon hydrogen and ammonia projects.
Masdar is an Emirati state-owned renewable energy company with a clean energy capacity of 31.5GW as of 2023 and a significant footprint across the Middle East.
Chairman of Masdar, Dr. Sultan Ahmed Al Jaber, said: “By collaborating to solve AI’s near-term challenges, we can also unlock AI’s long-term benefits across the energy value chain – helping to secure a sustainable and prosperous future for generations to come.”
In addition, the companies will explore opportunities to accelerate AI deployment across ADNOC’s operations to enhance efficiencies, drive methane reduction initiatives, and strengthen biodiversity monitoring.
The agreement closely follows the release of a co-authored report by the signatories calling for greater collaboration between the technology and energy sectors to harness the power of AI to accelerate the energy transition.
“It's imperative that we generate more carbon-free energy to power AI and use that very same technology to increase capacity, optimize transmission, and expand energy access to communities around the world,” said Brad Smith, vice chair and president of Microsoft.
Microsoft has increased its data center footprint within the UAE in recent years. In April, it announced an investment of $1.5 billion for a minority stake in G42, an AI firm in the UAE.
The companies said they will co-develop and deliver AI solutions with Microsoft Azure to various industries and markets across the Middle East, Central Asia, and Africa.
