At Adipec, energy’s big chance to power the AI boom

Artificial intelligence is reshaping the energy sector, prompting stakeholders to consider urgent measures. The four-day Adipec conference in Abu Dhabi seeks to convert this technological opportunity into a more robust energy system. Held annually since 1984, this year's event faces significant challenges. Global energy markets have been disrupted by geopolitical tensions, particularly the threat to crucial shipping routes through the Strait of Hormuz, which heightens concerns over supply.

Despite these obstacles, energy supplies continue to flow from the UAE and the wider region. Demand remains robust, especially from Asian countries, which are expected to attend in record numbers. Over 2,260 exhibitors, 181,000 pre-registered visitors, 40 government ministers, and 12,000 conference delegates highlight the forum's importance in addressing shared challenges.

This year, AI is a focal point of the dialogue. A joint study by Adnoc, XRG, and Microsoft found that 62% of surveyed energy leaders have identified AI as one of their two top corporate priorities, up from 42% in the previous year. Nearly nine in 10 have increased their spending on AI, and 63% anticipate that their existing investments will either cover or surpass costs.

While ramping up energy production can only partially address this surging demand, investment is needed to modernize grids, expand storage, and accelerate cleaner generation. The practical benefits of AI in the energy industry are evident as it transitions from pilot programs to broader adoption. It is already enhancing maintenance, increasing production, making hazardous inspections safer, and helping balance complex electricity networks.

However, AI is also creating new energy demands. According to the survey, nearly three-quarters of respondents predict AI will increase energy consumption by 2030, while only 52% believe existing infrastructure can meet the additional demand. A separate Adipec survey revealed that 81% of energy executives expect AI-related electricity requirements to surpass current forecasts.

Investment in modernizing grids, expanding storage, and accelerating cleaner generation are crucial to meeting this growing demand. Adnoc's advancements in the oil production ecosystem reflect these developments, while Masdar's initiatives in the US data center market demonstrate how renewable energy can support computing needs.

The central theme of last year's Adipec, "Knowledge is power, but now power is knowledge," regarding the electricity required for AI processing, remains highly relevant. This year's theme, "Performance under pressure: energy systems in a new era," underscores the need for resilient energy systems as the industry focuses on building resilience amidst geopolitical strain and rising electricity demand.

The solutions to achieving this resilience are expected to be discovered at Adipec over the next four days.