Minister of Energy and Infrastructure: The growth in global demand for oil and gas is driven by the expansion of large data centers

ABU DHABI, 4th November, 2017 (WAM) – His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, confirmed that the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) continues to grow and develop in terms of the quality of participation and discussion topics, in which artificial intelligence and advanced technology form a main focus in its current edition, by providing innovative technical solutions that contribute to reducing costs and enhancing the efficiency of the global energy sector. His Excellency said in a statement to the Emirates News Agency, WAM, that the UAE is among the best countries in the world in applying artificial intelligence technologies, according to a recent study issued by Microsoft, which placed the country in first place in the world in terms of the use of artificial intelligence at a rate of 59.4% compared to the global average of 15%. He explained that this growth reflects the increase in the number of data centers around the world, which require greater energy capabilities than currently available, which imposes new variables on global energy strategies in light of the decreasing cost of producing wind energy and storing electricity in batteries, which opens the way for a greater expansion in electricity production from renewable energy sources. Regarding expectations for global demand for oil and gas during the coming year, His Excellency Suhail Al Mazrouei explained that participants in the ADIPEC 2025 activities confirmed that the demand for electricity has quadrupled to meet the needs of giant data centers being established around the world, especially in the United States, China and other countries, pointing out that the UAE is part of this global race as it is one of the leading countries in adopting artificial intelligence technologies. He added that large data centers require large amounts of electricity and cooling, which requires diversifying energy sources to cover these needs, including fossil fuels. Al Mazrouei expected that the demand for oil and gas would witness growth in the medium and long term to support these centers, which is what the UAE realized early under the directives of its wise leadership by enhancing investments in the energy sector of all types and sources. He stressed that the UAE, as an active member of OPEC and OPEC Plus, continues to contribute to studying market conditions and coordination between member states in light of expectations of increased future demand for all types of energy, whether fossil or renewable. He pointed out that the UAE pays great attention to raising energy efficiency in buildings by launching specific initiatives and projects in federal buildings, in addition to cooperating with the emirates of the country to maximize the benefit of modern technologies and improve the efficiency of energy consumption, which contributes to achieving savings of up to about 30% of consumption, stressing that these efforts form a pivotal part of the improvements of the national energy strategy. His Excellency stressed that the UAE has achieved qualitative progress in implementing the UAE Energy Strategy 2050, a step that reflects its firm commitment to achieving climate neutrality and enhancing the security and sustainability of the energy system, in line with the “We Are the Emirates 2031” vision and the directives of the wise leadership towards a more prosperous and sustainable future. He said that the UAE has succeeded over the past years in building an integrated energy system based on diversification, efficiency and sustainability, which contributed to raising the contribution of clean energy to the national electricity mix to more than 30% in 2024 and expanding the installed capacity of renewable energy to exceed 6.8 gigawatts currently, with projects under implementation that will raise the total capacity to 22 gigawatts by 2031. Al Mazrouei also stressed that solar, nuclear and low-emission hydrogen projects have become essential pillars in the national energy system that enhance the capacity of The state is committed to achieving an effective balance between economic growth and environmental protection, pointing out that the volume of national investments in the renewable and clean energy sector reflects the state’s confidence in this vital sector as a major driver of sustainable development and a promising field for future partnerships and investments. He pointed out that during the year 2024, comprehensive updates were adopted to the UAE Energy Strategy 2050 to keep pace with the global transformations in this sector and raise the level of national ambition. The target for electricity production from clean sources was raised to 35% by 2031 instead of 32%, and the ambition for renewable energy was increased to more than three-fold by 2031 compared to 2022. His Excellency pointed out that the updated energy strategy integrated the outcomes of the National Hydrogen Strategy 2050 within the comprehensive energy planning system to make hydrogen one of the main axes in achieving climate neutrality, with a focus on strengthening regional and international electrical connectivity and expanding investment in energy storage and smart grids. This consolidates the country’s position as a leading regional and global center in clean energy. Al Mazrouei stressed that the UAE is moving confidently towards a sustainable energy future based on innovation and international partnership and balancing economic development with environmental preservation, thus embodying its vision to be a global model in smart and sustainable energy transformation. In a related context, His Excellency Suhail Al Mazrouei participated in the ministerial round table entitled “Enhancing Energy Security and Resilience through Diversification” within the “ADIPEC 2025” activities, where he reviewed the most prominent features of the UAE Energy Strategy 2050, which is based on four main axes: diversification, reserve flexibility, reasonable cost, and resilience, which supports the country’s long-term vision for sustainable development and ensuring reliable energy supplies through integrated planning, regional cooperation, and innovation. Al Mazrouei stressed that the UAE continues to consolidate its position as a major player in the global energy system, through a balanced approach that combines enhancing energy security and accelerating the transition towards clean energy, as part of its commitment to achieving climate neutrality by 2050. He explained that reducing carbon emissions and energy security are two complementary goals that do not conflict, stressing that the country is adopting an advanced model in reconciling sustainability and flexibility by diversifying energy sources and adopting the latest technologies and innovations. His Excellency said: “The UAE Energy Strategy 2050 proves that decarbonization enhances energy security by raising the efficiency of the system and enhancing its sustainability and flexibility, thus establishing the foundations of a low-carbon and energy-secure future. The UAE adopts a diverse mix that includes oil, natural gas, renewable energy, and nuclear energy, each of which plays a strategic and integrated role, and investment in renewable energy is a major axis within the strategy.” He stressed that innovation and international cooperation constitute two basic pillars for achieving the country’s ambitions to build a sustainable, flexible and safe energy system for future generations, which enhances economic and industrial growth, and supports the country’s journey towards achieving climate neutrality.

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