BRICS+ Series: UAE Launches US Energy Investment to Power AI Boom
Image: AFP
The announcement came from Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (Adnoc) and UAE Minister of Industry and Technology, at the Atlantic Council's Global Energy Forum in Washington DC. At the heart of the move is a recognition that America's power infrastructure, designed for a different time, must be urgently upgraded to meet the soaring demands of the AI economy.
Al Jaber introduced XRG, Adnoc's newly formed global investment arm, as the entity spearheading this transformation. The funding marks a sixfold expansion in XRG's U.S. interests and underlines a shift in strategy: acknowledging that artificial intelligence will drive demand for 50–150 gigawatts (GW) of additional installed capacity within the next five years. As a point of comparison, he noted that a single hyperscale data centre can consume 'as much electricity as a city the size of Pittsburgh', highlighting the dramatic scale of the upcoming energy challenge.
'This moment presents a once-in-a-generation opportunity,' Al Jaber stated, stressing the need for seamless collaboration between energy producers, grid operators, financiers, and policymakers. He emphasised that while ramping up power generation is crucial, the greater obstacle lies in enhancing transmission and distribution networks—the 'last mile' of energy delivery. 'You can't run tomorrow's technology on yesterday's grid,' he warned, underscoring that much of America's grid architecture remains rooted in an earlier era.
Addressing the bottlenecks of outdated infrastructure, Al Jaber revealed that installing vital equipment such as transformers and turbines often takes over three years, slowing down grid expansion. To counteract this delay, an annual investment of US $300 billion in grid modernisation is essential. Globally, the scale of the issue is staggering—an estimated 2,600 GW of power production capacity currently sits idled, waiting for grid access.
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XRG is already making inroads into the U.S. energy landscape, having invested in the largest liquefied natural gas (LNG) plant in Texas. Additionally, Masdar USA, the renewable-energy arm of Adnoc, has delivered approximately 5.5 GW of clean energy production and storage capacity spread across the east and west coasts. Both Adnoc and XRG have established a presence in Washington DC to coordinate this historic wave of investment.
This initiative unfolds against a backdrop of rising geopolitical tensions between Israel and Iran. Al Jaber seized the moment to reaffirm the UAE's commitment to 'de-escalation and diplomacy', suggesting that economic collaboration remains a powerful stabilising force amid global unrest.
Other senior UAE officials echoed his sense of urgency. Mariam Almheiri, CEO of 2PointZero and advisory chair to the Presidential Court, cautioned that 'time is not on our side', highlighting the necessity to move rapidly. 2PointZero, an Abu Dhabi-based holding firm, has been targeting opportunities across the AI value chain—including critical minerals and cable manufacturing—and aims to list on stock markets this year.
Similarly, Mohamed Al Hammadi, CEO and MD of Emirates Nuclear Energy Company (Enec), expressed notable optimism about forging U.S. partnerships. He confirmed that nuclear energy remains a central component of the UAE's diversified energy mix. 'In the next five years, we will hopefully generate electrons with partners who are serious to capitalise on those business opportunities,' he said, signalling the potential for clean base-load energy to meet AI's hefty requirements.
In combining fossil fuels, renewable energy, nuclear power, and grid infrastructure investment, the UAE is advancing a comprehensive energy blueprint. The planned US $440 billion investment represents not only a financial behemoth but also an instrument of global strategic influence. It emphasises that addressing AI's power demands requires more than adding generation capacity—it necessitates a re-engineering of the entire energy ecosystem, from source to socket.
Should this programme achieve even partial success, it may herald a transformational era for the U.S. energy sector. By unlocking stalled projects and upgrading outdated networks, such a wave of investment could bolster grid reliability, reduce carbon emissions, and accelerate adoption of next-generation technologies. As AI continues its inexorable rise—touching every facet of modern life—the infrastructural foundation to support its energy appetite must evolve swiftly.
For now, the UAE's vision marks a significant pivot in global energy collaboration. Anchored by XRG and endorsed by leaders across sectors, the plan extends beyond short-term profit—it offers a blueprint for securing the technological backbone of tomorrow's economy. If realised, it stands to define a new model of strategic energy partnership: dynamic, integrated, and purpose-built for an age of intelligence and innovation.
Written by:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russian & Middle Eastern Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.
** MORE ARTICLES ON OUR WEBSITE https://bricscg.com/
** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
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