Abu Dhabi National Energy Company (Taqa) and Emirates Water and Electricity Company have announced the successful completion of a 3.6 billion dirham financing deal for the Al Dhafra power plant project, which will generate 1 gigawatt of electricity. This initiative aims to provide energy for data centers, supporting the UAE’s National Artificial Intelligence Strategy 2031. The majority of the funding, approximately 85%, will be secured through bank loans from both local and international financial institutions.
Construction work on the Al Dhafra facility has already commenced and is being executed by Taqa with unprecedented speed.
Major Opportunity
Dr. Frank Bosmeier, Head of Investments in Power Generation and Water Desalination at Taqa, stated, “Artificial intelligence presents a significant opportunity for economic growth and an increasing demand for energy. Meeting this demand requires a flexible approach to electricity supply and a sustainable energy mix that prioritizes decarbonization and resilience. The Al Dhafra power plant exemplifies this strategy.” He emphasized that Taqa has been involved with the project from its inception, through development and construction, to securing necessary funding, all accomplished rapidly. This demonstrates their capability and commitment to swiftly support the growing energy needs of data centers. The plant will play a crucial role in providing flexible power capacity, enabling a greater integration of electricity generated from renewable sources into the electric grid.
Significant Milestone
Mohammed Al Marzooqi, CEO of Development and Asset Management at Emirates Water and Electricity Company, remarked, “The successful financing of this project in a short timeframe marks a significant milestone in our efforts to ensure the future of energy in the UAE through innovation and strategic collaboration.” He added, “As a fundamental component of the National Artificial Intelligence Strategy 2031, the Al Dhafra power plant will provide essential infrastructure for the next generation of data centers, reinforcing the country’s global leadership in this sector. The primary flexible power that this plant will provide will significantly support our growing projects in renewable energy and large-scale battery storage systems, facilitating the necessary transition to integrate much higher levels of clean energy into the network.”
Taqa holds complete ownership of both the project company and the operations and maintenance company. The project will be carried out on a build, own, and operate basis. This financing announcement follows Taqa’s agreement with Emirates Water and Electricity Company to purchase electricity for 24 years, signed in April 2025 concerning the Al Dhafra power plant.
In addition to the Al Dhafra project, Taqa’s transmission network division will develop advanced electricity transmission infrastructure to connect the additional capacity generated by this plant with new energy demand sources, ensuring reliable electricity with a lower carbon footprint.
Taqa targets increasing its total power generation capacity to 150 gigawatts by 2030, including renewable energy projects through its 43% stake in Masdar, as it continues to advance towards achieving this growth ambition.