TAQA and EWEC Achieve Financial Close for 1 GW Al Dhafra Power Plant to Support AI Data Centers

Abu Dhabi | EcoPulse24

Abu Dhabi National Energy Company (TAQA), in collaboration with Emirates Water and Electricity Company (EWEC), announced the financial close for the 1 GW Al Dhafra power plant, representing an investment of approximately AED 3.6 billion. This strategic step aims to provide energy for data center projects and support the implementation of the UAE National Artificial Intelligence Strategy 2031.

The project financing relies primarily on debt, accounting for about 85% of the total, with participation from a wide range of local and international banks, including Standard Chartered, Abu Dhabi Commercial Bank, Agricultural Bank of China, Doha Bank, First Abu Dhabi Bank, HSBC, ICBC, KfW, National Bank of Kuwait, RAKBANK, Woori Bank, Abu Dhabi Islamic Bank, Boubyan Bank, and Ajman Bank.

Construction of the Al Dhafra gas turbine project has already begun, with TAQA developing it at an unprecedented pace. TAQA will fully build, own, and operate the plant, including the operations and maintenance company.

The financial close follows the signing of a 24-year Power Purchase Agreement between TAQA and EWEC in April, establishing a long-term commercial foundation for the plant as a vital energy infrastructure project.

Dr. Frank Bosmaier, Chief Investment Officer for Generation at TAQA, stated that artificial intelligence presents a pivotal growth opportunity but also drives increased energy demand, requiring a flexible, secure, and sustainable energy mix focused on emission reduction. He emphasized that the Al Dhafra plant exemplifies this approach by providing flexible baseload power, facilitating the integration of renewables into the grid.

Mohamed Al Marzouqi, Chief Asset Development and Management Officer at EWEC, affirmed that the financial close marks a milestone in securing the UAE's energy future, enabling next-generation data centers and strengthening the country’s global AI hub status. The flexible baseload power from the plant complements the expansion of renewable energy projects and battery storage, supporting an orderly transition to a low-emission energy system.

TAQA Transmission will also develop advanced electricity network infrastructure to connect new generation capacity to growing demand centers, ensuring reliable, low-carbon electricity supply.

The Al Dhafra project forms part of a declared AED 36 billion investment package in Abu Dhabi’s energy infrastructure, led by EWEC, TAQA, and Masdar. This supports an unprecedented global project enabling 24/7 renewable energy supply through the world’s largest integrated solar and battery storage system, with a daily baseload capacity of 1 GW, with part of the output dedicated to AI data centers.

This initiative aligns with TAQA’s long-term growth ambitions, targeting a total generation capacity of 150 GW by 2030, supported by its 43% stake in Masdar, reinforcing its role as a key player in the energy transition both locally and globally.

The project reflects the UAE’s commitment to developing advanced low-carbon energy infrastructure to meet the growing demands of the digital economy and artificial intelligence, while maintaining energy security and supporting the net-zero goal by 2050.