The UAE is developing new regulations and an energy-efficiency rating system for data centres as it seeks to manage the growing power demands of artificial intelligence infrastructure, a senior government official said on Monday.
Speaking on the sidelines of the Forbes Middle East Building the Future Summit in Abu Dhabi, Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at the Ministry of Energy and Infrastructure, said the ministry is working on policies aimed at improving energy efficiency in data centres, which are expected to play an increasingly important role in the country’s AI ambitions.
With AI adoption accelerating globally, demand for data centres has surged, bringing concerns about their high electricity consumption.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“We are seeing a large exponential increase in data centres,” Al Olama said.
He said the ministry is working with private-sector partners to identify technologies that could reduce power consumption in such facilities.
“There is a possibility of bringing a technology to the UAE that can reduce energy consumption in data centres by 40 per cent,” he said.
If implemented successfully, the government could support the technology through policy measures and require its adoption across data centres, he added.
Al Olama also revealed that the ministry is developing regulations related to energy efficiency in data centres and is working with the UAE’s AI authorities on a rating system that would assess facilities based on their energy performance.
The move comes as countries worldwide grapple with the energy implications of AI expansion. Large-scale data centres require substantial electricity supplies, particularly for cooling systems that keep servers operating efficiently.
Explaining the concept, Al Olama compared AI-powered energy management in data centres to smart air-conditioning systems that adjust cooling levels according to occupancy, rather than operating continuously at maximum capacity.
Beyond data centres, the ministry is also studying wider reforms to improve energy resilience and efficiency across the country.
Al Olama said the government is developing policies around microgrids – localised energy systems that can operate independently or alongside the main electricity network.
According to the official, pilot projects have already been conducted on two ministry buildings and delivered promising results.
“The crisis showed us that we need to move towards another way of working,” he said, referring to the importance of strengthening energy security.
He said microgrids could improve energy resilience while lowering electricity costs for consumers and helping support the country’s long-term energy security objectives.
The UAE’s broader energy strategy continues to focus on diversification, combining conventional energy sources with nuclear, solar and wind power.
During a fireside discussion at the summit, Al Olama said energy security in the UAE rests on two key principles: diversification and long-term planning.
“We are still heavily dependent on conventional fossil-fuel-based energy. However, we have diversified and included nuclear energy,” he said.
He pointed to the Barakah Nuclear Energy Plant, which supplies more than 20 per cent of the country’s electricity demand, alongside large-scale renewable energy projects such as the Mohammed bin Rashid Al Maktoum Solar Park.
Al Olama also highlighted the role of AI in improving efficiency across the energy sector and government operations more broadly.
“We have around 70 assistant undersecretaries working on AI across different sectors. This is only the beginning,” he said.
“I am 100 per cent certain that within a year, the way the world works will change.”
Looking further ahead, he predicted that AI would become a core partner in government service delivery, enabling faster and more proactive interactions with residents.
“The person in the UAE will receive services in seconds,” he said. “AI will be the main partner of humans.”
Al Olama said he already uses AI tools daily to organise meetings, prepare briefing notes, gather information on companies and coordinate schedules.
The comments come as the UAE continues to position itself as a global hub for artificial intelligence, digital infrastructure and advanced energy technologies, while balancing growing electricity demand with its clean-energy and net-zero ambitions.
Source: Khaleej Times