Strong energy sector gives Abu Dhabi competitive edge in global AI race

Al Etihad

19-05-2025

20 May 2025 00:18
KHALED AL KHAWALDEH (ABU DHABI) Abu Dhabi's rapidly evolving AI ecosystem is closely tied to its world-class energy sector, experts said at a conference on Monday, following last week's landmark announcement of the record-breaking 5GW UAE-US data centre. The capital's abundant energy resources are expected to give it a competitive edge in the global AI race, the industry leaders added. "There's no AI without energy," said ADNOC Drilling CFO Yousef Salem, reflecting on the UAE's upcoming AI campus during talks held at the Arqaam Capital MENA Conference in Abu Dhabi. "The simultaneous announcements with major US players like Exxon and Occidental are not coincidental … Abu Dhabi is positioning itself as the nexus of energy and technology, creating a holistic strategy that fuels exponential growth."Last week, ADNOC and Exxon Mobil Corp and Occidental announced plans to expand the nation's oil and gas production capacity. Deals which Salem said were heavily influenced by the rapid expansion of AI infrastructure. He said the emergence of AI had become a key factor in future energy decisions. This sentiment was echoed by Magdalena Konig, General Counsel and Company Secretary at AIQ, who praised the UAE's leadership for pre-empting the global AI-energy dialogue years ago. "You cannot talk about the silicon age without addressing energy efficiency," Kenesbai said. "Data centres use about like 2% of global energy, but that is actually expected to increase by about 50% by the end of this year. And I think by the end of the decade, it's going to increase by, you know, 165%, the symbiosis between energy and AI is not optional; it is critical." Konig said the strategic partnerships Abu Dhabi has forged with US technology giants - which coincided with strong energy ties - were critical to developing the infrastructure required to support AI's massive computational and energy demands.Dr. Prashanth Marpu, CTO at Smart Solutions part of Space42, added that Abu Dhabi's investments are not merely symbolic. "All this infrastructure is being built because it will be fully utilised," he said. "We are building platforms that not only serve the UAE but also offer solutions globally." The panellists agreed that Abu Dhabi's strategy of building both AI and energy ecosystems end-to-end gave it a competitive edge. They believed that by investing in everything from academic institutions and research hubs to industrial partnerships and regulatory sandboxes, the emirate was constructing a comprehensive innovation landscape. "This clustering of industries creates gravitational pull, making Abu Dhabi a magnet for talent, capital, and technological breakthroughs," Salem said.
"AI and energy are two sides of the same coin, and Abu Dhabi holds that coin firmly in its hand."