According to Forbes, Masdar has broken ground on a groundbreaking solar-plus-battery project in Abu Dhabi that’s the world’s first gigawatt-scale renewable system operating 24/7. The $6 billion project pairs one gigawatt of solar generation with 19 gigawatt-hours of battery storage to deliver continuous power to the Emirates Water and Electricity Company. Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Masdar’s founding CEO, framed this as proving economic growth and climate action can coexist. The system will prevent 5.7 million tons of CO2 emissions and provides enough power for 500,000 homes. This comes as the International Energy Agency projects global electricity demand from data centers and AI could reach 945 terawatt-hours by 2030—nearly equal to Japan’s entire annual electricity use.
Sponsored content — provided for informational and promotional purposes.
<h2 id="the-ai-power-crunch”>The AI Power Crunch Is Real
Here’s the thing about AI that most people don’t realize: it’s incredibly power-hungry. Unlike traditional industries that might scale back operations at night, data centers run 24/7. And they’re often clustered in areas where local grids are already strained. We’re talking about electricity demand that could rival entire countries within just six years.
So what happens when utilities face this surge? In many places, the easy answer is to fire up more coal plants. Brownouts are bad for business, after all. But Masdar’s project shows there might be another way—using renewables plus massive battery storage to create what used to be fossil fuels’ exclusive domain: baseload power.
Not Just Another Solar Farm
What makes this different from every other renewable project we’ve seen? The scale and the economics. We’re talking about a system that can discharge stored solar energy overnight or during cloudy periods, providing steady output exactly when digital infrastructure needs it most. And crucially, this was developed without subsidies.
Dr. Ibraheem Almansouri, Masdar’s director of engineering, told Forbes this is “additive power”—they’re expanding capacity to meet new AI-driven demand rather than replacing existing supply. The project uses lithium-iron-phosphate batteries, which sacrifice some energy density for greater safety and durability. Basically, they’re betting on stability over maximum power.
The Replication Problem
But can this model work outside Abu Dhabi? That’s the billion-dollar question—or rather, the $6 billion question. The UAE has some unique advantages that might not translate elsewhere.
For starters, they have EWEC as a single electricity procurer. That simplifies integration dramatically. Many countries have fragmented electricity markets where coordinating 24-hour delivery contracts would be a nightmare. Then there’s the cost—$6 billion isn’t exactly pocket change, even for major energy players.
Wood Mackenzie notes that the Middle East and Africa already have the lowest levelized cost for utility-scale solar globally. But battery costs, while falling, might not continue their rapid decline. And let’s be honest—integrating this into national grids requires policy coordination that many governments struggle with.
Bigger Than Energy
This isn’t just about keeping the lights on. AI has become the new frontier of economic competitiveness, and access to clean, reliable power will determine which regions lead the digital revolution. The IEA warns that data center power demand could double by 2030, creating a potential climate disaster if met with fossil fuels.
Masdar’s already planning similar projects in Kazakhstan—a 500-megawatt solar project and 600-megawatt battery-wind farm. They’ve designed this to be modular and replicable, recognizing that each country has different energy mixes and needs.
So where does this leave us? The technology clearly works. The economics are becoming competitive. But the real test will be whether other countries can overcome the policy and market barriers to make 24/7 renewables the norm rather than the exception. The race to power AI cleanly is on—and for the first time, renewables might actually be winning.
