Abu Dhabi National Energy Company (TAQA) and Emirates Water and Electricity Company (EWEC) has achieved financial close for the $980 million (AED3.6 billion) 1GW Al Dhafra Power Plant, which will power data centers and support the UAE National AI Strategy 2031.
Construction of the Al Dhafra Gas Turbine project has begun, with TAQA owning 100 percent of the project and O&M company, and set to build, own, and operate the 1GW plant. The financial close follows TAQA’s 24-year Power Purchase Agreement with EWEC signed in April.
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.
The project is majorly financed through debt, with around 85 percent funded by a mix 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, RAK Bank, Woori Bank, Abu Dhabi Islamic Bank, Boubyan Bank, and Ajman Bank.
The Al Dhafra plant, part of the $9.8 billion (AED36 billion) energy infrastructure investment by EWEC, TAQA, and Masdar, will support Masdar’s world-first project enabling 24/7 renewable energy dispatch, strengthening the UAE’s leadership in low-carbon power.
Delivering up to 1GW of renewable baseload power daily, it will be the world’s largest combined solar and battery energy storage system (BESS) and supply AI data centres. With a 43 percent stake in Masdar, TAQA aims to reach 150GW of gross power generation by 2030 and is on track to achieve this target.
Dr. Frank Possmeier Chief Investment Officer TAQA – Generation business
“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 prioritizes decarbonization and flexibility. The Al Dhafra Gas Turbine Power Plant exemplifies this approach. 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 that, “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 centers 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.”
