emirates7 - Abu Dhabi National Energy Company PJSC (TAQA), together with Emirates Water and Electricity Company (EWEC), on Tuesday announced the financial closing of AED3.6 billion 1GW Al Dhafra Power Plant, which will provide power to data centre projects and advance the UAE National Strategy for Artificial Intelligence 2031.
The project is primarily funded by around 85 percent through debt financing from both local and international banks, including, Standard Chartered Bank, Abu Dhabi Commercial Bank, Agricultural Bank of China, Doha Bank, First Abu Dhabi Bank, HSBC, ICBC, KFW, National Bank of Kuwait, RAK bank, Woori Bank, Abu Dhabi Islamic Bank PJSC, Boubyan Bank and Ajman Bank.
Construction of the Al Dhafra Gas Turbine project has already begun and is being developed by TAQA at an accelerated and unprecedented pace.
TAQA owns 100 percent of both the project company and the operation and maintenance (O&M) company. It will build, own and operate this 1 GW plant. The financial close of this critical infrastructure project follows the announcement of TAQA signing a 24-year Power Purchase Agreement (PPA) with EWEC in April.
“AI represents a major opportunity for both economic growth and increased energy demand. Meeting this demand requires an agile, secure, and sustainable energy mix that prioritises decarbonisation and flexibility," said Dr. Frank Possmeier, Chief Investment Officer, TAQA’s Generation business. "The Al Dhafra Gas Turbine Power Plant exemplifies this approach."
TAQA has taken the project from inception to development, through to beginning construction, and now to financial close at record speed —demonstrating its agility and commitment to supporting the rapid growth in energy needs driven by AI data centres.
He added that the plant also plays a crucial role in providing flexible baseload power that enables greater integration of renewable energy into the system.
Mohamed Almarzooqi, Chief Asset Development and Management Officer of EWEC, said, “As a key enabler of the UAE National Strategy for Artificial Intelligence 2031, Al Dhafra Power Plant provides the critical energy infrastructure required to power the next generation of data centres and strengthen the nation’s position as a global leader.
"Furthermore, the flexible baseload power that will be delivered by this plant complements our growing pipeline of utility-scale renewables and battery storage, providing the essential transitional capacity needed to integrate significantly higher levels of clean energy into the grid."
In addition, TAQA Transmission, part of TAQA Group, will develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to reliable power with a low carbon footprint.
Importantly, Al Dhafra plant, as part of the announced investment of AED36 billion in energy supply infrastructure in Abu Dhabi by EWEC, TAQA, and Masdar, will support Masdar’s world-first project that will enable renewable energy to be dispatched 24 hours a day, seven days a week, reaffirming the UAE’s position as a global pioneer in renewable energy deployment and low-carbon infrastructure.
Delivering up to 1GW of baseload power every day generated from renewable energy, it will be the largest combined solar and battery energy storage system (BESS) in the world and will also provide power to AI data centres.
Through TAQA’s own growth aspirations and its 43 percent shareholding in Masdar’s renewable energy company, it is targeting to grow to 150 GW of gross power generation by 2030 and TAQA is on track to achieve this growth ambition.
The project is primarily funded by around 85 percent through debt financing from both local and international banks, including, Standard Chartered Bank, Abu Dhabi Commercial Bank, Agricultural Bank of China, Doha Bank, First Abu Dhabi Bank, HSBC, ICBC, KFW, National Bank of Kuwait, RAK bank, Woori Bank, Abu Dhabi Islamic Bank PJSC, Boubyan Bank and Ajman Bank.
Construction of the Al Dhafra Gas Turbine project has already begun and is being developed by TAQA at an accelerated and unprecedented pace.
TAQA owns 100 percent of both the project company and the operation and maintenance (O&M) company. It will build, own and operate this 1 GW plant. The financial close of this critical infrastructure project follows the announcement of TAQA signing a 24-year Power Purchase Agreement (PPA) with EWEC in April.
“AI represents a major opportunity for both economic growth and increased energy demand. Meeting this demand requires an agile, secure, and sustainable energy mix that prioritises decarbonisation and flexibility," said Dr. Frank Possmeier, Chief Investment Officer, TAQA’s Generation business. "The Al Dhafra Gas Turbine Power Plant exemplifies this approach."
TAQA has taken the project from inception to development, through to beginning construction, and now to financial close at record speed —demonstrating its agility and commitment to supporting the rapid growth in energy needs driven by AI data centres.
He added that the plant also plays a crucial role in providing flexible baseload power that enables greater integration of renewable energy into the system.
Mohamed Almarzooqi, Chief Asset Development and Management Officer of EWEC, said, “As a key enabler of the UAE National Strategy for Artificial Intelligence 2031, Al Dhafra Power Plant provides the critical energy infrastructure required to power the next generation of data centres and strengthen the nation’s position as a global leader.
"Furthermore, the flexible baseload power that will be delivered by this plant complements our growing pipeline of utility-scale renewables and battery storage, providing the essential transitional capacity needed to integrate significantly higher levels of clean energy into the grid."
In addition, TAQA Transmission, part of TAQA Group, will develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to reliable power with a low carbon footprint.
Importantly, Al Dhafra plant, as part of the announced investment of AED36 billion in energy supply infrastructure in Abu Dhabi by EWEC, TAQA, and Masdar, will support Masdar’s world-first project that will enable renewable energy to be dispatched 24 hours a day, seven days a week, reaffirming the UAE’s position as a global pioneer in renewable energy deployment and low-carbon infrastructure.
Delivering up to 1GW of baseload power every day generated from renewable energy, it will be the largest combined solar and battery energy storage system (BESS) in the world and will also provide power to AI data centres.
Through TAQA’s own growth aspirations and its 43 percent shareholding in Masdar’s renewable energy company, it is targeting to grow to 150 GW of gross power generation by 2030 and TAQA is on track to achieve this growth ambition.