Abu Dhabi: Energy giants ADNOC, Masdar, XRG, and Microsoft have announced a new strategic partnership to accelerate the use of artificial intelligence (AI) across ADNOC’s value chain and to develop energy solutions that will power Microsoft’s global AI and data centre operations.
The agreement, unveiled at the ENACT Majlis in Abu Dhabi ahead of ADIPEC 2025, builds on ADNOC and Microsoft’s long-standing collaboration. It brings Masdar and XRG into the partnership to advance sustainable energy projects and infrastructure supporting Microsoft’s worldwide operations.
Under the new deal, ADNOC and Microsoft will jointly develop and deploy AI agents to enable autonomous operations, improve efficiency, and reduce emissions across ADNOC’s energy network. Microsoft will also provide AI tools, platforms, and training programmes, while the companies explore setting up a joint innovation ecosystem for next-generation energy solutions.
“As AI continues to reshape how value is created and enhanced across industries, ADNOC, Masdar, and XRG are embedding AI into every layer of our operations while advancing the energy systems that will power AI itself,” said 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.
“Through our partnership with Microsoft, we are unlocking new opportunities to fuel the future of AI, drive greater performance, and future-proof our business,” he added.
ADNOC was the first energy company to deploy enterprise-wide generative AI in November 2023 using Microsoft Copilot. Since then, more than 40,000 employees have completed AI training, with adoption rates above 90% and productivity gains of over 70,000 hours per month.
Microsoft Vice Chair and President Brad Smith said the partnership underscores the need for global collaboration to ensure a sustainable digital transformation.
“No single company or industry can meet this moment alone. Accelerating the transition to a more sustainable, secure, and inclusive energy future requires deep collaboration between governments, energy providers, technology companies, and innovators everywhere,” Smith said.
The collaboration reinforces Abu Dhabi’s position as a global hub for energy innovation, combining ADNOC’s industrial expertise, Microsoft’s technological leadership, and Masdar and XRG’s strengths in clean energy.
The announcement also builds on the findings of the 2025 Powering Possible Report, jointly published by ADNOC and Microsoft, which surveyed more than 850 global experts on how AI is transforming the energy sector.
