The worldwide power panorama is continually evolving with one factor remaining fixed: the demand for power, whatever the kind, continues to extend. There are 8.2 billion individuals on this planet right this moment who all want entry to inexpensive, sustainable, and safe power. International power demand is projected to develop between 11% and 18% by 2050,1 and assembly this rising demand would require innovation from each a part of the power sector worth chain.
As we witnessed in lots of management dialogues at CERAWeek 2025, AI adoption is going down at an accelerated velocity within the power sector. The position of AI in assembly rising power demand is multifaceted and transformative. AI can optimize operations, scale back power consumption, improve grid capability and reliability, and assist renewable power integration. It may well additionally tackle power safety and sustainability efforts, akin to carbon seize and storage, and methane administration and mitigation. AI’s potential within the power sector is powerful. Critically, all these improvements are underpinned by the {industry}’s collective purpose to mitigate environmental impression and proceed to maneuver in the direction of a extra sustainable future, whereas assembly the rising demand for power.
Microsoft is dedicated to serving to to drive progress within the power {industry} by way of technological innovation—working to empower the power workforce, optimize operational effectivity and security, advance web zero commitments, and develop sustainable, AI-powered companies.
CERAWeek 2025 takeaways
In March 2025, we attended CERAWeek 2025, one of the crucial influential power gatherings of the 12 months, which offers a platform for over 8,000 attendees to attach, share and talk about insights, and discover the place the {industry} is headed.
This 12 months, a number of key takeaways from the occasion have been:
- AI is altering the sport throughout industries, and power is not any exception.
Jason Zander, Govt Vice President for Strategic Missions and Applied sciences at Microsoft, spoke within the session “Will AI Revolutionize the Vitality Sector?” and mentioned the methods wherein AI is reworking the power sector with modern options that enhance power effectivity, optimize manufacturing, and combine renewable sources. One of many current breakthroughs that Jason highlighted is Microsoft’s Majorana 1, the world’s first Quantum Processing Unit (QPU) powered by a Topological Core, designed to scale to 1,000,000 qubits on a single chip. This development has sensible purposes to assist resolve among the most tough world challenges. It brings the potential to revolutionize the power {industry} with potentialities akin to creating self-healing supplies, enhancing security, creating catalysts to interrupt down plastics, and considerably advancing sustainability by way of extra recyclable and reusable supplies.
- Highly effective collaboration with industry-leading, strategic companions is essential to development and innovation.
A number of of our companions; Accenture, Cognite, Honeywell, Kongsberg Digital, Schneider Electrical, and SLB showcased their industry-leading, real-world options within the Microsoft sales space. These modern AI-powered options illustrate the immense alternative to remodel the power {industry} and empower the power workforce with fashionable expertise.One standout demo was Schneider Electrical’s new One Digital Grid Platform, an AI-powered system that helps enhance the reliability and effectivity of energy grids. Utilizing Microsoft Azure, this platform permits totally different software program options to work collectively, serving to utilities modernize their grids and supply cleaner, extra inexpensive power at a decrease total price. Schneider Electrical is leveraging Microsoft options to enhance grid reliability, and is collaborating with Itron to take action. Options like these, constructed with strategic companions, tackle the necessity for a contemporary, digital grid to supply power to all who want it.
Remodel and optimize resilient power techniques with AI
AI’s potential within the power {industry} is transformative, with the aptitude to optimize operations, strengthen safety, and advance decarbonization. To supply the power that the world would require, the power {industry} wants clever options that tackle these wants with quicker insights and elevated productiveness.
The impression of AI options is immediately correlated to the quantity of knowledge corporations have at their disposal. For power corporations which will have a fractured knowledge property spanning numerous environments and proprietary knowledge codecs, establishing a unified knowledge basis is a tough job. Because of this Microsoft is dedicated to equipping {industry} leaders with highly effective, enterprise platforms just like the Microsoft Cloud to speed up this transformation. And with Microsoft Material, knowledge, AI, safety, and purposes are built-in to allow real-time knowledge processing and AI-powered insights in order that corporations could make knowledgeable selections extra rapidly. Microsoft Azure Knowledge Supervisor for Vitality can be an essential piece of this power knowledge journey, and significant to carbon storage and planning. Most powerfully, it might create a repository for all of a corporation’s knowledge in a single location. Moreover, by adopting our adaptive cloud strategy and unifying siloed groups, distributed websites, and sprawling techniques right into a single operation, organizations can improve safety, enhance knowledge modeling, and leverage cloud-native and AI applied sciences throughout hybrid, multicloud, edge, and Web of Issues (IoT) environments.
From there, customized experiences and insights may be generated with Microsoft 365 Copilot. These cutting-edge options are designed to assist power corporations harness the total potential of their knowledge with AI—enabling seamless integration, real-time insights, and predictive analytics to assist drive effectivity and innovation throughout the sector.
One huge alternative for the power sector in the case of utilizing AI is its energy to assist decarbonize the power worth chain. It’s clear that decarbonization is a vital step in the direction of attaining a sustainable and net-zero future—involving decreasing carbon emissions throughout all phases of power manufacturing, distribution, and consumption. By integrating renewable power sources and bettering power effectivity by way of adopting modern applied sciences like AI, the power sector has the potential to considerably decrease its carbon footprint extra rapidly than was potential with out the effectivity features from AI. The current Worldwide Vitality Company report, “Vitality and AI” shares a number of potential examples of price and power financial savings in energy plant operations and end-use sectors, akin to manufacturing and transportation. For instance, AI in transportation can improve car operation and administration, probably slicing power consumption—and due to this fact emissions—as much as 20%.2
AI’s potential in enhancing safety is immense, providing each huge implications and alternatives. Utilizing AI to boost safety is already making a distinction for corporations, with a current examine of Copilot customers exhibiting that utilizing Microsoft Safety Copilot diminished imply time to decision by 30%.3 Harnessing the ability of AI to bolster safety within the power {industry}, we not too long ago launched six new Microsoft Safety Copilot brokers. These brokers signify the ability of AI to answer an more and more excessive quantity of safety threats that power organizations face right this moment. They’re designed to autonomously handle high-volume safety duties, serving to to supply sturdy safety for vital power infrastructure. By leveraging superior menace intelligence and machine studying, these brokers can swiftly detect, examine, and reply to safety incidents, serving to to mitigate dangers related to cyberattacks.
Demonstrating the ability of collaboration in AI innovation, new partner-developed brokers can even be obtainable in Safety Copilot. These options provide industry-specific options, akin to the power to know sector-specific compliance wants. This strategy enhances operational effectivity and can assist to strengthen the general safety posture for power corporations that undertake brokers, permitting IT and operations groups to give attention to their core operations whereas sustaining a resilient protection in opposition to ever-evolving threats.
Our prospects like Chevron are additionally already seeing the impression of AI of their operations, integrating real-time knowledge from IoT units, optimizing tools and bandwidth prices, and accelerating decision-making with AI on the edge.
Collaborating with Chevron on amenities of the longer term with Azure IoT Operations
With its Amenities and Operations of the Future initiative, Chevron is reimagining the monitoring of its bodily operations to assist distant and autonomous operations by way of enhanced capabilities and real-time entry to knowledge. This contains ongoing efforts to make use of expertise to unlock entry to related knowledge throughout an enormous community of IoT units—finally for higher velocity to selections. Chevron labored intently with Microsoft to deploy Azure IoT Operations, enabled by Azure Arc. This edge-to-cloud knowledge aircraft facilitates knowledge seize from numerous units like Wi-Fi cameras, thermal cameras, sensors, robots, and drones on the edge earlier than sending it to the cloud. Chevron selected Azure for its versatile infrastructure to manage knowledge and scale globally, unifying websites and techniques into one AI-assisted management pane. Utilizing AI on the edge, the place sensors are positioned on the tools, helps optimize tools and bandwidth prices and accelerates velocity to insights.
Be taught extra about power and sources options with Microsoft
As we glance to the longer term, AI is turning into an more and more essential pressure within the power {industry}—enabling corporations to realize higher security and effectivity, assist safe their operations, and improve sustainability. Key to this development and innovation is highly effective collaboration with our strategic companions and safe, resilient options that meet the {industry}’s sturdy wants. Microsoft stays devoted to supporting this journey, offering the instruments and applied sciences wanted to thrive in an ever-evolving power panorama.

Microsoft for power and sources
Drive innovation to realize web zero
1 International Vitality Perspective 2024, McKinsey, September 2024.
2 Vitality and AI, AI for power optimization and innovation.
3 Agentic AI and Microsoft Safety Copilot: Revolutionizing cybersecurity, March 2025.