Agreement to power Microsoft’s data centers with renewable energy through Masdar
ADNOC and the Abu Dhabi Future Energy Company (Masdar) recently signed a strategic collaboration agreement with Microsoft on a range of artificial intelligence (AI) and low-carbon initiatives in the UAE and globally. Through those initiatives, the three companies aim to decarbonize the energy system and enable a sustainable energy system for the future. The announcement was made at ADIPEC 2024 currently taking place in Abu Dhabi.
Powering Microsoft’s data centers
Under the agreement, the three companies will evaluate opportunities to power Microsoft’s data centers with renewable energy through Masdar, which ADNOC is a shareholder in. They will also explore the usage of AI to advance carbon capture and storage projects as well as low-carbon ammonia and hydrogen projects.
Accelerating AI deployment across ADNOC’s operations
Furthermore, ADNOC, Masdar and Microsoft will explore opportunities to accelerate AI deployment across ADNOC’s operations to enhance efficiencies and drive methane reduction initiatives. This falls in line with the Oil & Gas Decarbonization Charter to achieve near-zero methane by 2030. Moreover, it helps ADNOC minimize emissions and strengthen biodiversity monitoring to better protect the environment.
The agreement follows the release of the ‘Powering Possible: AI and Energy for a Sustainable Future’ report, which ADNOC, Masdar and Microsoft co-authored. This report and the ENACT Majlis, a CEO gathering of over 70 world leaders in technology, energy and investment, call for greater collaboration between the technology and energy sectors to harness the power of AI to accelerate the energy transition.
Unlocking AI’s long-term benefits across the energy value chain
During his participation at ADIPEC 2024, His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC managing director and group CEO, and chairman of Masdar, said that the world is at a pivotal moment for human progress driven by three megatrends: the rise of the global south, the accelerated energy transformation, and the rapid growth 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. It is also creating a power surge that nobody accounted for just 18 months ago,” he added.
Therefore, by collaborating to solve AI’s near-term challenges, the energy sector can also unlock AI’s long-term benefits across its value chain. This will help secure a sustainable and prosperous future for generations to come.
AI solutions generate $500 million in value
AI solutions are enabling ADNOC’s Net Zero by 2045 ambition and its target to achieve near-zero methane emissions by 2030. Between 2022 and 2023, the company’s AI tools reduced one million tons of carbon dioxide. In addition, they generated $500 million in value. Therefore, ADNOC seeks to expand its partnerships with industry leaders like Microsoft and Masdar to reach its sustainability targets.
“AI will 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 centers that will power the AI future,” stated Mohamed Jameel Al Ramahi, CEO of Masdar.
Read | ADIPEC 2024: Microsoft supports energy transition towards more sustainable future
Meeting the AI moment amid energy transition
For his part, Brad Smith, vice chair and president of Microsoft, said that this new era calls on companies to both meet the AI moment and transition to a more sustainable economy.
“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, optimize transmission, and expand energy access to communities around the world. This isn’t a journey any of us can take alone. It requires working across technology, energy, science, and policy sectors to find solutions and accelerate our collective progress,” he added.
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