Before the opening of ADIPEC 2025, ADNOC, Masdar, XRG and Microsoft have announced a landmark strategic agreement to accelerate artificial intelligence (AI) deployment across ADNOC’s value chain and deliver next-generation energy solutions to support Microsoft’s expanding global AI and datacentre infrastructure.
Unveiled days before Abu Dhabi’s flagship energy event, the partnership aims to deploy artificial intelligence across ADNOC’s operations and deliver sustainable infrastructure to power Microsoft’s global datacentre growth.
The announcement was made at the ENACT Majlis in Abu Dhabi, setting the stage for ADIPEC, which kicks off this week. ADIPEC is one of the world’s largest and most influential energy gatherings, drawing thousands of industry leaders, policymakers and innovators to shape the future of energy. ADNOC, as the UAE’s national oil company, plays a central role at the event, showcasing its leadership in energy innovation, sustainability and digital transformation.
This agreement builds on a history of collaboration between ADNOC and Microsoft. At ADIPEC 2024, the two companies, alongside Masdar, signed a Strategic Collaboration Agreement to advance AI and low-carbon initiatives. That partnership explored using renewable energy from Masdar to power Microsoft’s datacentres and applying AI to carbon capture, low-carbon ammonia and hydrogen projects aimed at reducing emissions and enhancing biodiversity monitoring.
The 2025 agreement expands that vision by bringing XRG into the fold and deepening the commitment to dual transformation, using AI to optimise energy systems and delivering clean energy to fuel the computational demands of AI itself.
Under the alliance, ADNOC and Microsoft will co-develop and deploy AI agents across ADNOC’s operations to enable autonomous decision-making, reduce emissions and improve efficiency. Microsoft will also provide advanced AI tools and upskilling programs for ADNOC’s workforce. Together, the companies will explore a joint innovation ecosystem to incubate transformative solutions for the energy sector.
“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,” said 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.”
Brad Smith, vice-chair and president resident of Microsoft, added: “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.”
ADNOC has already demonstrated its AI leadership. In November 2023, it became the first energy company to roll out generative AI enterprise-wide using Microsoft Copilot. Since then, more than 40,000 employees have completed AI training, with utilisation rates exceeding 90% and productivity gains surpassing 70,000 hours per month.
The collaboration also builds on insights from the 2025 edition of the Powering possible report, jointly published by ADNOC and Microsoft. Drawing from more than 850 global experts, the report explores how AI is transforming energy systems, from predictive maintenance and emissions monitoring to intelligent grid management and energy optimisation.
As ADIPEC 2025 opens its doors this week, the ADNOC-Masdar-XRG-Microsoft alliance offers a compelling preview of the energy sector’s future, where AI and clean energy converge to drive innovation, resilience and sustainability.
