Abu Dhabi’s energy giants ADNOC, Masdar, and XRG have announced a major strategic agreement with Microsoft to simultaneously accelerate artificial intelligence deployment in the energy sector and develop sustainable energy solutions to power the future of AI. The landmark collaboration was unveiled at the ENACT Majlis in Abu Dhabi.
A Dual Mandate for Energy and AI
The partnership establishes a two-way street for innovation. On one side, ADNOC will leverage Microsoft’s advanced capabilities to co-develop and deploy pioneering AI agents. These tools are designed to drive autonomous operations and unlock significant efficiencies across the energy company’s vast value chain.
On the other side, the agreement brings clean energy leader Masdar and industrial conglomerate XRG into the fold to develop sustainable energy projects and infrastructure. This initiative is geared specifically towards supporting the immense energy demands of Microsoft’s expanding global AI and data center footprint.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, Executive Chairman of XRG and Chairman of Masdar, commented on the vision. “As AI continues to reshape how value is created and enhanced across industries, ADNOC, Masdar and XRG are not only embedding AI into every layer of our operations – we are also advancing the energy systems that will power AI itself. Through our partnership with Microsoft, we are unlocking new opportunities to fuel the future of AI, drive greater performance, and future-proof our business.”
Building on an Existing Foundation
This collaboration expands upon a long-established partnership between ADNOC and Microsoft. In a significant move, ADNOC became the first energy company to roll out generative AI enterprise-wide in November 2023, utilizing Microsoft Copilot. The adoption has been extensive, with over 40,000 employees completing AI training, leading to utilization rates above 90% and generating over 70,000 hours in monthly productivity gains.
As part of the new agreement, Microsoft will provide further advanced AI tools and upskilling programs while exploring a joint innovation ecosystem with ADNOC to create transformative solutions for the global energy sector.
“No single company or industry can meet this moment alone,” said Brad Smith, Vice Chair and President of Microsoft. “Accelerating the transition to a more sustainable, secure, and inclusive energy future requires deep collaboration between governments, energy providers, technology companies, and innovators everywhere.”
Reinforcing Abu Dhabi’s Innovation Hub Status
The agreement cements Abu Dhabi’s position as a global hub for energy and technology innovation. It creates a powerful synergy by combining ADNOC’s industrial leadership, Microsoft’s digital and AI expertise, and the clean energy capabilities of Masdar and XRG to responsibly advance the AI era.
About ADNOC
Abu Dhabi National Oil Company (ADNOC) is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.
Source: Zawya
