TLDR: Adnoc has partnered with Microsoft to co-develop and deploy AI agents across its operations to enhance efficiency and automation. The collaboration also involves Masdar and XRG to develop sustainable energy infrastructure for Microsoft’s global AI and data center expansion, reinforcing Abu Dhabi’s role as an energy innovation hub.
The Abu Dhabi National Oil Company (Adnoc) has announced a significant strategic partnership with Microsoft, alongside Masdar and XRG, to accelerate the deployment of artificial intelligence (AI) across Adnoc’s value chain and to power Microsoft’s global AI and data center growth. This expanded agreement, building on a long-established partnership, was unveiled at the ENACT Majlis in Abu Dhabi, ahead of ADIPEC.
Under the terms of the agreement, Adnoc and Microsoft will jointly develop and embed AI agents designed to drive autonomous operations and boost efficiency throughout Adnoc’s extensive operations. This initiative further extends Adnoc’s existing use of AI solutions, which saw the company become the first energy firm to roll out generative AI enterprise-wide in November 2023 with Microsoft Copilot.
The collaboration extends beyond Adnoc’s internal operations. Masdar, Abu Dhabi Future Energy Company, in which Adnoc is a shareholder, and XRG will play a crucial role in developing sustainable energy projects and infrastructure. These projects are specifically aimed at supporting the expansion of Microsoft’s global AI and data centers, highlighting a growing interdependence between AI and energy sectors.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Chairman of Masdar, emphasized the transformative nature of this partnership. He stated, “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.”
Brad Smith, Vice Chair and President of Microsoft, echoed this sentiment, noting, “This new era calls on us to do two things at once: meet the AI moment while transitioning to a more sustainable economy. 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.”
Microsoft will also contribute by providing advanced AI tools and comprehensive upskilling programs for Adnoc’s workforce. Both companies are committed to exploring a joint innovation ecosystem to create transformative solutions for the broader energy sector.
The partnership is underpinned by insights from the “Powering Possible: AI and Energy for a Sustainable Future” report, co-authored by Adnoc, Masdar, and Microsoft. The 2025 edition of this report, which gathered perspectives from over 850 global experts, reveals a significant shift towards large-scale AI deployments in the energy sector, with nearly 90% of companies increasing their AI investments. The report underscores AI’s critical role in optimizing grids, reducing emissions, improving efficiency, and addressing the new demands for electricity and resilient infrastructure driven by the AI revolution.
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Adnoc’s commitment to AI is evident in its past achievements; since the rollout of Microsoft Copilot in November 2023, over 40,000 employees have completed AI training, leading to utilization rates above 90% and a gain of over 70,000 hours per month in productivity. This collaboration reinforces Abu Dhabi’s ambition to be a global energy innovation hub, leveraging industrial leadership, digital expertise, and clean energy capabilities to responsibly advance the AI era.
