UAE energy chief says data center boom assures oil’s dominance

The UAE’s top energy executive told the audience at Abu Dhabi Sustainability Week that an expected 500% increase in power demand from data centers by 2040 – propelled by artificial intelligence – means that hydrocarbons will remain the Earth’s dominant fuel.

In a keynote address to the annual environment conference on Monday, Dr. Sultan Al Jaber, CEO of the ADNOC state oil company and Minister of Industry and Advanced Technology, said the UAE has invested more than $148 billion in AI initiatives.

The government plans to expand its clean energy capacity to more than 22 gigawatts by 2031 to help meet rising electricity needs from its data centers, he said.

“While some view this as a constraint, I view it as a catalyst,” said Al Jaber, who served as President at the U.N.’s COP28 climate conference in Dubai three years ago. “Sustainable progress is not about slowing down growth; it is about designing a better engine.”

Al Jaber told the gathering that roughly $4 trillion of annual investment will be required globally in grids and data center infrastructure to keep pace with demand as digitalization accelerates.

The event drew senior leadership from around the world, with UAE President Sheikh Mohamed bin Zayed attending the opening ceremony alongside heads of state from Serbia, Albania, Nigeria, South Africa and the Philippines.

Chief executives from major energy and investment firms came to Abu Dhabi for the conference, including BlackRock, TotalEnergies, Engie and Iberdrola.