In a recent report, UAE energy giants Adnoc and Masdar, along with Microsoft, have highlighted artificial intelligence (AI) as a pivotal tool in accelerating the global energy sector’s journey toward net-zero emissions. Titled “Powering Possible: AI and Energy for a Sustainable Future,” the report emphasizes AI’s role in improving efficiency, reducing emissions, and facilitating an expanded shift to carbon-free energy sources.
The study reveals that while global electricity demand is anticipated to increase by 3–4% annually through 2030, AI can help meet this demand sustainably. However, the energy needed to power AI-related data centers is expected to grow between 8–23% annually through 2026, potentially pushing AI’s share of global electricity consumption to 0.24% by then. Despite a massive $250 billion in private AI investments from 2017 to 2023, only 5% has been directed toward the energy sector.
The report cites figures from the International Renewable Energy Agency (IRENA), which underscores the urgency: the global deployment rate of renewable energy sources must increase by 16% annually to meet emissions targets. Major challenges remain, including permitting delays, limited grid infrastructure, and supply chain issues. AI could address these gaps, as the report suggests that advanced AI systems could detect methane leaks—a potent greenhouse gas—20% more effectively than older technologies. Such advancements would be instrumental in achieving the Global Methane Pledge, which targets a 30% reduction in methane emissions by 2030.
In addressing the energy demand of AI-driven data centers, the report projects a significant increase, particularly in regions such as the European Union, where data centers could account for over 5% of the total electricity load by 2026. The International Energy Agency (IEA) notes that European data center electricity demand is expected to rise approximately 9% each year. The report calls for a multifaceted strategy to sustainably power these centers and further the clean energy transition, asserting that AI itself can optimize energy transmission, improve grid capacity, and expand access to energy worldwide.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Chairman of Masdar and ADNOC Managing Director, remarked, “We are at a pivotal moment for human progress driven by three megatrends: the rise of the Global South, the accelerated energy transition, and the rapid growth of AI… By collaborating to solve AI’s near-term challenges, we can also unlock AI’s long-term benefits across the energy value chain, helping to secure a sustainable and prosperous future for generations to come.”
Brad Smith, Vice Chair and President of Microsoft, also underscored the potential of AI to enhance sustainability efforts, stating, “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.”
The report identifies critical action areas to accelerate collaboration between energy and technology sectors, including workforce development, expanding grid capacity, establishing global data standards, and advancing policy frameworks. With AI investments forecasted to reach $150 billion by 2025, the authors stress that ensuring reliable, carbon-free energy access is key to AI’s future growth and to achieving net-zero targets.
