Masdar’s AI Power Play 2025: Analyzing the Strategic Shift to Fuel Data Centers

Masdar’s Commercial Adoption of AI: From Internal Optimization to Market Dominance

Masdar executed a strategic pivot in 2025, reallocating capital from the speculative green hydrogen market to meet the immediate, high-demand energy needs of the Artificial Intelligence industry. This move repositions the company from a general renewables developer to a critical enabler of the digital economy, directly addressing the massive power requirements of data centers and AI workloads. The shift is defined by a dual strategy of building large-scale clean energy projects for AI customers (“Energy for AI”) and deploying AI to enhance its own operational efficiency (“AI for Energy”).

• Between 2021 and 2024, Masdar focused on building an internal AI competency and ecosystem. This phase was characterized by deploying operational AI like the IdentiFlight system at its Zarafshan wind farm for environmental safety and forging a key agreement in October 2024 with Presight to develop a generative AI asset management tool.
• The strategic change was explicitly announced in August 2025, when Masdar confirmed it was diverting “billions of dollars” from green hydrogen projects to initiatives targeting the AI sector. This decision was a pragmatic response to a slow-moving offtake market for green hydrogen and the immediate, exponential growth in energy demand from AI.
• In 2025, this strategy was commercialized through tangible projects and agreements. These include a direct Power Purchase Agreement (PPA) with Soluna Holdings in March 2025 to power a data center with 166 MW of wind energy and the groundbreaking of the monumental $6 billion ‘Round the Clock’ project in October 2025, specifically designed to provide 1 GW of continuous baseload power for AI.
• The company’s dual strategy was solidified through a November 2025 alliance with ADNOC, Microsoft, and XRG. This partnership aims to both deploy AI to reduce emissions in energy operations and build the clean energy infrastructure required to power Microsoft’s global AI activities.

Masdar’s Investment Analysis 2025: Capital Reallocation to AI and Grid Infrastructure

Masdar’s investment strategy in 2024 and 2025 reflects a clear capital reallocation toward infrastructure that directly supports the AI industry. The company has committed billions to utility-scale solar and battery storage projects designed for baseload power delivery and to grid-stabilizing assets in key international markets. This spending is backed by successful green bond issuances, signaling strong investor confidence in Masdar’s pivot to powering the digital economy.

Table: Masdar’s Strategic Investments in AI-Enabling Infrastructure

Masdar’s Strategic Partnership Network: Building an AI and Energy Ecosystem in 2025

Masdar has constructed a comprehensive partnership network to execute its dual “Energy for AI” and “AI for Energy” strategy. These collaborations bring together energy incumbents, technology giants, AI specialists, and utility providers to build both the physical and digital infrastructure needed to power the AI revolution sustainably.

Table: Masdar’s Key Strategic Partnerships for AI and Energy

Masdar’s Geographic Expansion: From a UAE Hub to a Global AI Power Provider

Masdar expanded its AI and energy strategy from a domestic focus in the UAE to a global execution model in 2025, targeting major technology hubs in Europe and North America with dedicated energy infrastructure projects.

• Between 2021 and 2024, Masdar’s AI activities were concentrated in the UAE, particularly within Masdar City. This area served as the primary hub for developing its AI ecosystem through partnerships with entities like Presight and MBZUAI and launching the supporting Khazna AI-ready data center.
• The geographic scope widened significantly in 2025 with major investments and commercial agreements in international markets. Key moves include a £1 billion commitment to battery energy storage in the UK, a direct PPA with data center operator Soluna Holdings in North America, and a partnership with Iberdrola for a major UK offshore wind project.
• Despite this global expansion, the UAE remains the strategic and symbolic core of Masdar’s AI power strategy. This is demonstrated by the $6 billion ‘Round the Clock’ project in Abu Dhabi, which serves as the flagship initiative to position the UAE as a global leader in sustainably powered AI.
• The company has also continued to deploy advanced technology in its broader international portfolio. This includes using the IdentiFlight AI system at its wind farm in Uzbekistan and signing a framework with TotalEnergies to explore clean energy delivery in Africa, indicating a strategy to leverage AI for operational and ESG goals across all regions.

Masdar’s Technology Maturity: From Operational AI to Commercial-Scale Energy Products

Masdar’s application of AI has matured from deploying internal, operational tools in 2024 to developing and marketing commercially-scaled energy solutions specifically for the AI industry in 2025.

• The 2021-2024 period focused on using proven AI to achieve operational and environmental goals. Examples include the IdentiFlight system for avian protection at wind farms and AI-driven smart irrigation systems within Masdar City, which provided tangible efficiency and ESG benefits.
• The development of a generative AI asset management tool with Presight, announced in October 2024, signaled a move toward more sophisticated, predictive technologies aimed at enterprise-wide optimization of Masdar’s global portfolio.
• In 2025, the application of technology advanced to enable new commercial products aimed at a specific market. The $6 billion ‘Round the Clock’ project is the primary example, validating the commercial-scale use of AI-enhanced forecasting and Virtual Power Plant (VPP) systems to create a new product: 1 GW of continuous, baseload clean power for data centers.
• This represents a fundamental shift from using AI to optimize existing assets to building new asset classes specifically designed for the AI industry. The PPA with Soluna Holdings and the explicit purpose of the ‘Round the Clock’ project confirm that AI is no longer just an internal tool but a primary driver of Masdar’s commercial offerings.

Masdar’s Strategic SWOT Analysis: Pivot to AI in 2025

Table: SWOT Analysis of Masdar’s AI Strategy

Forward-Looking Insights: Execution of Flagship AI Power Projects is Masdar’s Top Priority

Masdar’s primary strategic focus for the next one to two years will be the successful execution and delivery of its flagship ‘Energy for AI’ projects, which will validate its entire market pivot.

• The most critical long-term milestone is the commissioning of the $6 billion ‘Round the Clock’ project, with a target completion date of 2027. The performance of this 1 GW continuous power facility will serve as the definitive proof point for Masdar’s strategy to power AI infrastructure with baseload renewables.
• A key near-term indicator to watch will be the successful powering of the UAE’s Phase One giant AI data center, which targets 200 MW to come online in 2026. This will be the first major commercial test of the company’s dedicated clean energy infrastructure for AI.
• While the corporate focus has clearly shifted, progress on the OMV green hydrogen joint venture, expected to form in early 2026, will signal how Masdar is managing its long-term diversification strategy and its remaining commitments in the hydrogen sector.
• Continued execution of its £1 billion UK BESS pipeline, with the upcoming Chesterfield and Cardiff projects, will demonstrate Masdar’s ability to build the necessary grid-stabilizing infrastructure required by data centers in key international markets outside the UAE.

Frequently Asked Questions

Why did Masdar pivot its investment strategy from green hydrogen to the AI sector in 2025?
Masdar shifted its strategy as a pragmatic response to the slow commercial development of the green hydrogen market. In contrast, the Artificial Intelligence industry presented an immediate and exponentially growing demand for massive amounts of energy, offering a more secure, high-growth opportunity for capital deployment.

What does Masdar’s dual “Energy for AI” and “AI for Energy” strategy mean?
Masdar’s dual strategy involves two core activities: 1) “Energy for AI,” which focuses on building large-scale clean energy infrastructure, like solar and battery projects, specifically to sell power to data centers and AI companies. 2) “AI for Energy,” which involves deploying AI technologies, such as predictive maintenance tools and safety systems, to improve the efficiency and safety of its own energy operations.

What is the ‘$6 billion ‘Round the Clock’ project and why is it significant?
The ‘Round the Clock’ project is Masdar’s flagship initiative in Abu Dhabi, involving a massive 5.2 GW solar and 19 GWh battery storage facility. Its significance lies in its design to provide 1 GW of continuous, 24/7 baseload renewable power, a “world first” specifically engineered to meet the non-stop energy demands of AI and data centers, positioning the UAE as a global leader in sustainably powered AI.

Who are Masdar’s key partners in executing its AI and energy strategy?
Masdar has formed a network of strategic partners. Key collaborators include technology giant Microsoft, to which it will supply clean energy; AI specialist Presight, to co-develop an AI asset management tool; and energy incumbents like ADNOC and EWEC, who are partners in deploying AI and offtaking the power from major projects.

What is the next major milestone to watch for in Masdar’s AI power strategy?
The most critical long-term milestone is the successful commissioning of the $6 billion ‘Round the Clock’ project, targeted for 2027, which will validate its ability to provide baseload renewables. In the near term, a key indicator will be the successful powering of the UAE’s first major AI data center (200 MW), which is scheduled to come online in 2026.