Abu Dhabi National Energy Company PJSC (TAQA), in partnership with Emirates Water and Electricity Company (EWEC), has achieved financial close on the approximately AED 3.6 billion, 1 GW Al Dhafra Power Plant, a major infrastructure project aimed at supplying electricity to data centre developments and supporting the UAE National Strategy for Artificial Intelligence 2031.
The project has been financed primarily through debt, accounting for around 85 per cent of the total funding, with participation from a consortium of local and international lenders. These include 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 power plant has already commenced and is being developed by TAQA at an accelerated pace. TAQA owns 100 per cent of both the project company and the operations and maintenance entity and will build, own and operate the 1 GW facility. The financial close follows TAQA’s signing of a 24-year power purchase agreement (PPA) with EWEC in April.
According to TAQA, the Al Dhafra plant will provide flexible baseload power, supporting the integration of renewable energy into the grid while meeting the rising electricity demand from AI-driven data centres. The project is positioned as a key component of the UAE’s broader energy transition and digital economy ambitions.
EWEC stated that the facility will play a critical role in strengthening national energy security while enabling the expansion of utility-scale renewable energy and battery storage capacity. The plant’s dispatchable power is expected to complement intermittent renewable sources, ensuring reliable 24/7 electricity supply.
In parallel, TAQA Transmission, a subsidiary of the TAQA Group, will develop advanced power grid infrastructure to integrate the new generation capacity and connect it to emerging sources of electricity demand, while maintaining a low-carbon footprint.
The Al Dhafra Power Plant forms part of a broader AED 36 billion investment in energy supply infrastructure announced by EWEC, TAQA and Masdar. The investment also supports Masdar’s planned world-first project designed to deliver renewable energy around the clock through a combination of large-scale solar generation and battery energy storage systems. Once operational, the project is expected to supply up to 1 GW of baseload power generated from renewable sources, making it the largest combined solar and battery storage system globally, with a portion of the output dedicated to AI data centres.
TAQA said the project aligns with its long-term growth strategy, including its 43 per cent shareholding in Masdar’s renewable energy business. The company is targeting 150 GW of gross power generation capacity by 2030 and stated it remains on track to achieve this ambition.
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