By: Utilities Middle east

Soaring electricity demand driven by rapid digital expansion and population growth is placing increased pressure on the UAE’s energy infrastructure, according to Suhail Al Mazrouei, Minister of Energy and Infrastructure.

Speaking at the World Utilities Congress in Abu Dhabi, Al Mazrouei said the country is experiencing an “overwhelming” surge in power requirements, particularly from the development of data centres. “The demand is growing and growing very strongly,” he said. “It’s overwhelming, I can tell you, even for a country like us in the UAE,” news agency The National reported.

The sharp uptick comes as the UAE accelerates investment in artificial intelligence and associated technologies. Last week, a consortium including G42, OpenAI, Oracle, Nvidia, Cisco and SoftBank Group announced Stargate UAE, a one-gigawatt data centre project set to be developed in Abu Dhabi. The facility will operate within the recently launched five-gigawatt UAE–US AI Campus.

Al Mazrouei urged governments to be “very open to new ideas when it comes to efficiency improvement”, and called for a more “objective” assessment of energy costs. He also noted that regulatory systems in many countries are struggling to keep pace with industry advancements.

Mohamed Al Hammadi, Managing Director and CEO of Emirates Nuclear Energy Company (ENEC), echoed concerns over mounting pressure on grids. He said the AI boom necessitates “urgent action” to expand access to clean energy – particularly nuclear – to meet accelerating global electricity demand.

“If we want to lead in AI and digital infrastructure, we must lead in energy,” he told delegates during a panel on the global power outlook to 2030, according to The National.

Francesco La Camera, Director General of the International Renewable Energy Agency, noted that while AI systems can increase overall efficiency, the scale of additional energy demand from data centres remains unclear. “If it’s true that data centres will require [more] power, this power should be provided by renewables,” he told The National.

Despite growing emphasis on clean power, Al Mazrouei said the Opec+ alliance must continue to pay close attention to oil demand trends. The group, led by Saudi Arabia and Russia, is “doing their best” to maintain market stability and encourage upstream investment, he said. “If this group was not there, there will be chaos. You will be seeing shocks and that is not good news for consumers.”

In a related development at the summit, the Abu Dhabi Department of Energy and Presight, a G42 subsidiary, launched a new AI-driven platform designed to integrate water, power, district cooling, and petroleum products into a central decision-making system.

According to The National, the Abu Dhabi Water and Energy AI Solution platform is expected to generate Dh100 million ($27.2 million) at launch, with projections to scale up to Dh1 billion by 2028.

“This innovation will optimise operations, predict complex demand patterns, achieve real-time system visibility and significantly enhance customer behaviour for millions of users,” said Abdulla Al Jarwan, Chairman of the Department of Energy.