ADNOC, Microsoft expand AI and energy partnership

ADNOC and Microsoft will co-develop AI agents to drive autonomous operations

#UAE #energy - Abu Dhabi national oil company ADNOC, Abu Dhabi renewable energy company Masdar, Abu Dhabi energy investment company XRG and US technology company Microsoft have announced a strategic agreement to accelerate AI deployment across ADNOC’s value chain, whilst delivering energy solutions for Microsoft’s global AI and datacentre growth. The collaboration, announced at the ENACT Majlis in Abu Dhabi ahead of ADIPEC, expands ADNOC and Microsoft’s long-established partnership to include Masdar and XRG developing sustainable energy projects. ADNOC and Microsoft will co-develop and deploy AI agents to drive autonomous operations and unlock efficiency, building on ADNOC’s November 2023 enterprise-wide Copilot deployment.

SO WHAT? - The ADNOC-Microsoft announcement aligns with the increasing role that Abu Dhabi plays in the global AI ecosystem, rather than positioning it as simply a buyer of US technology. The partnership addresses both the deployment of AI within energy operations and also the energy demands of Microsoft’s global AI infrastructure expansion. The collaboration could position Abu Dhabi as a strategic partner for technology companies seeking both operational AI deployment expertise and sustainable energy infrastructure to power global datacentre networks.

Here are some key points about this announcement:

• ADNOC, Masdar, XRG and Microsoft signed a strategic agreement to accelerate AI deployment across ADNOC’s value chain, whilst delivering energy solutions for Microsoft’s global AI and datacentre expansion.

• Announced at the ENACT Majlis in Abu Dhabi, the expanded agreement brings Abu Dhabi renewable energy company Masdar and Abu Dhabi energy investment company XRG into ADNOC and Microsoft’s existing partnership to develop sustainable energy projects and infrastructure supporting Microsoft’s expansion.

• ADNOC and Microsoft will co-develop and deploy AI agents to drive autonomous operations and unlock greater efficiency across ADNOC’s operations, with Microsoft providing advanced AI tools and upskilling programmes.

• ADNOC became the first energy company to roll out generative AI enterprise-wide in November 2023 with Microsoft Copilot, with more than 40,000 employees completing AI training and utilisation rates above 90% since deployment.

• The company has gained over 70,000 hours per month in productivity since the enterprise-wide rollout, demonstrating meaningful operational impact from AI adoption at scale across its value chain.

• Both companies will explore a joint innovation ecosystem to create transformative solutions for the energy sector, building on their 2025 Powering Possible Report which drew insights from more than 850 global experts on AI’s transformation of energy.

• Masdar, jointly owned by TAQA, ADNOC and Mubadala, has developed and invested in projects across over 40 countries with combined capacity exceeding 50 gigawatts, targeting 100GW renewable energy portfolio capacity by 2030.

• XRG, wholly owned by ADNOC with enterprise value exceeding $80 billion, focuses on lower-carbon energy and chemicals with interests in industry-leading companies meeting global demand for lower-carbon energy and essential chemical building blocks.

ZOOM OUT - The ADNOC-Microsoft partnership alongside UAE-US strategic frameworks, including the one just announced for energy and AI in energy cooperation. The two countries signed a memorandum of understanding to accelerate collaboration in energy and artificial intelligence, with focus on boosting advanced industrial capabilities, adopting smart manufacturing technologies, and leveraging The MoU was signed in the presence of the UAE President Sheikh Mohamed bin Zayed Al Nahyan at Qasr Al Shati in Abu Dhabi. The agreement, signed by ADNOC chairman Dr Sultan Ahmed Al Jaber and the US Secretary of the Interior and National Energy Dominance Council Chairman Doug Burgum, also covers AI applications in robotics, materials engineering and automation alongside technical collaboration, knowledge sharing and capacity building. The agreement supports the UAE’s ambition to become a global hub for industry and advanced technology.

[Written and edited with the assistance of AI]