Abu Dhabi Set to Double Power Demand by 2050 Amid Rapid Economic and Digital Growth

Abu Dhabi’s power demand is projected to double by 2050, driven by the rapid expansion of the economy, population growth, and the development of digital infrastructure, according to a senior official.

Abdulaziz Alobaidli, director general for regulatory affairs at the Department of Energy, told The National that the emirate’s total installed capacity is expected to rise from the current 25 gigawatts to 50 gigawatts, supported by major investments in utility infrastructure.

“In the coming decades, Abu Dhabi will invest more than Dh300 billion in utility infrastructure in generation, transmission and distribution. This is to cope with the demand growth alongside population growth, economic expansion, adoption of digital infrastructure, AI and computing plans,” Mr Alobaidli stated.

To reach net-zero energy targets by 2050, Abu Dhabi is accelerating the construction of renewable energy plants. This trajectory aligns with the International Energy Agency's forecast that global electricity demand will nearly double by mid-century.

Last year, the UAE launched a pioneering facility designed to provide continuous renewable energy at scale. Masdar, in partnership with the Emirates Water and Electricity Company (Ewec), is developing the $6 billion project capable of producing 1 gigawatt of uninterrupted clean power, with financial close reached in June and operations anticipated to begin next year.

“Contribution of clean and renewable [energy] is expected to reach 60 per cent in the coming five years (from 45 per cent currently) and then we will increase it further in the coming years,” Mr Alobaidli explained.

Additionally, massive investments in artificial intelligence infrastructure are poised to further elevate energy requirements. Key initiatives include the 1GW Stargate UAE project, spearheaded by Abu Dhabi-based artificial intelligence company G42 in conjunction with technology giants OpenAI, Oracle, and Nvidia within the 5GW UAE-US AI Campus in Abu Dhabi.

While water demand is also climbing, it is not accelerating at the same pace as power needs. The emirate is focusing on advanced reverse osmosis technology to satisfy rising water demands as older thermal desalination units approach the end of their operational lifespans.

Mr Alobaidli confirmed that water and power supplies remained uninterrupted and assets undamaged during the recent regional conflict involving Iran, attributing the system's resilience to long-term planning and investment.

Despite regional pressures following retaliatory actions after US and Israeli strikes on Tehran on February 28, the UAE economy expanded by 3 per cent year-on-year in the first three months of 2026, reaching Dh485 billion ($132 billion) on the strength of its growing non-oil sector.