Artificial intelligence is transforming the energy industry, while its growing appetite for electricity demands urgent attention. As Adipec opens on Monday, the key question for stakeholders is how to turn this technological promise into a more resilient energy system.
The four-day gathering, held annually in Abu Dhabi since 1984, takes place against a backdrop of considerable uncertainty. Global energy markets have been disrupted by geopolitical turmoil, with the threat to vital shipping routes through the Strait of Hormuz adding to concerns over supply.
Yet energy flows continue from the UAE and the wider region. And demand for energy remains strong, particularly from Asian countries, whose delegations are expected to attend in record numbers. The participation of 2,260 exhibitors, 181,000 pre-registered visitors, 40 government ministers and 12,000 conference delegates further underlines the value of a forum that brings together producers, consumers and investors to address their shared challenges.
This year, AI is central to that conversation. New research jointly conducted by Adnoc, XRG and Microsoft shows that 62 per cent of surveyed energy leaders now rank the technology among their two leading corporate priorities, up from 42 per cent last year. Almost nine in 10 increased spending on it, while 63 per cent expect returns on existing investments to cover or exceed costs.
The benefits that AI brings to the energy industry are increasingly becoming clear as it moves from pilot programmes to wider adoption. It is reportedly already improving maintenance, enhancing production, making hazardous inspections safer and helping balance complex electricity networks. These are practical, tangible gains for an industry that is today confronting unpredictable supply and growing demand.
And of course, this technology is creating new supply demands. According to the survey, nearly three quarters of respondents expect AI to increase energy consumption by 2030, while only 52 per cent believe existing infrastructure can meet the additional demand. A separate Adipec survey found that 81 per cent of energy executives expect AI-related electricity requirements to exceed current forecasts.
Increasing energy production can only partially meet this surging demand. Investment must be made to modernise grids, expand storage and accelerate cleaner generation, too. Adnoc’s advancements across the oil production ecosystem is taking these developments into account. Masdar’s ambitions in the US data-centre market show how renewable energy can help meet computing needs. But reliable supply will require a mix of technologies, supported by infrastructure capable of delivering electricity when and where it is needed.
The central theme of last year’s Adipec was “Knowledge is power, but now power is knowledge”, meaning the electricity needed for AI processing. That equation is being tested by geopolitical strain and rising electricity demand – which is why one of this year’s themes, “Performance under pressure: energy systems in a new era”, could not be more relevant today as the energy industry focuses on building resilience.
The answers on how to achieve this, it is hoped, can be found at Adipec over the next four days.
