That is where AI comes in. To break the infrastructure bottleneck and shift the industry from ambition to delivery, Microsoft is announcing an AI for nuclear collaboration with NVIDIA, to provide end-to-end tools that streamline permitting, accelerate design, and optimize operations across the industry.

This set of technologies brings disciplined engineering to the entire lifecycle of a nuclear plant—spanning site permitting, design, construction, and continuous operations. By enabling these capabilities within a connected, AI-powered foundation, we are empowering energy developers to make highly complex work repeatable, traceable, secure, and predictable—slashing development timelines and eliminating rework without sacrificing safety.

The digital foundation for nuclear at scale

The only thing that may be more complex than building a nuclear plant is designing and permitting one. Permitting alone can take years, cost hundreds of millions of dollars, and involve an immense amount of data processing and reporting. It’s not a lack of need, knowledge, or even willingness that’s holding development back, but rather the inability to progress efficiently and consistently through rigorous permitting and development processes.

Engineers can spend thousands of hours drafting, cross-referencing, formatting, searching, reviewing, and reworking materials. They have to identify and fix inconsistencies across tens of thousands of pages. It is little wonder that plants have been notorious for construction delays and cost overruns.

To break this infrastructure bottleneck, we need to move away from highly customized engineering towards repeatable, reference-based delivery—while maintaining regulatory standards and engineering accountability.

With AI, we can identify tiny documentation inconsistencies and resolve them quickly. By unifying data and simulation across the lifecycle, we ensure complex work remains:

• Traceable: Every engineering decision is digitally linked to the evidence and regulations that back it up.
• Audit-Ready: The system keeps a perfect “paper trail,” ensuring that regulators can verify safety instantly.
• Secure: High-level intelligence is applied within a governed, protected environment.
• Predictable: High-fidelity simulations map time and cost, catching delays before they happen in the real world.

This isn’t just about speed; it’s about trust. Engineers and regulators are freed to focus on what matters most: building a safe, secure, high-capacity, carbon-free power source that’s on-time and on-budget.

Here is how AI and Digital Twins can carry a project from the initial phases to efficient operations:

• Design and engineering: Digital Twins and high-fidelity simulations enable faster iteration. Engineers can reuse proven patterns and instantly see how a tiny design change impacts the entire model, creating a validated plan before breaking ground.
• Licensing and permitting: Generative AI handles the heavy lifting of document drafting and gap analysis. It unifies all project information, ensuring comprehensive applications aligned with historical permits. This allows expert regulators to focus their time on safety judgments rather than reconciling thousands of pages of text.
• Construction and delivery: While traditional 3D models only map physical space, 4D (time scheduling) and 5D (cost tracking) simulations can virtually construct the plant before shovels hit the dirt. AI and Digital Twins allow developers to track physical progress against the digital plan in real-time, catching potential delays and preventing the schedule collisions that lead to expensive rework.
• Operations and maintenance: AI-powered sensors and operational digital twins detect anomalies early, ensuring higher uptime and predictive maintenance that keeps the grid stable with human operators firmly in control.

By unifying data, traceability, and simulation across phases, AI accelerates design validation with high-fidelity 3D models and Digital Twins, improves licensing consistency through AI-assisted document workflows, and connects design assumptions to operational performance—giving operators, regulators, and stakeholders clearer, continuous visibility.

Accelerating delivery: How Aalo Atomics, Idaho National Labs, and Southern Nuclear are deploying AI for nuclear

The proof is in the progress. Our collaboration is already changing the pace of nuclear delivery.

Aalo Atomics

Aalo Atomics has reduced the time-intensive permitting process by 92% using the Microsoft Generative AI for Permitting solution, saving an estimated $80 million a year. For Aalo, the value of the Microsoft and NVIDIA collaboration isn’t just speed—it’s confidence.

“Two things matter most: enterprise-scale complexity and mission-critical reliability. We’re deploying something complex at a scale only a company like Microsoft really understands. There’s no room for anything less than proven reliability.”

—Yasir Arafat, Chief Technology Officer, Aalo Atomics

Southern Nuclear

Southern Nuclear has developed and deployed agents using Microsoft Copilot across its fleet, including engineering and licensing, to improve consistency, reuse knowledge faster, and support better decision-making in key workstreams.

Idaho National Laboratory

When it comes to the public sector and specifically United States Federal, Idaho National Laboratory (INL) has become an early adopter of AI for nuclear technology. By using the AI capabilities to automate the assembly of complex engineering and safety analysis reports, INL is streamlining the review process and creating standard methodologies for regulators to adopt these tools safely, further speeding deployment.

Expanding the ecosystem: How Everstar and Atomic Canyon are operationalizing AI for nuclear on Microsoft Azure

Microsoft is actively expanding this secure ecosystem. Everstar—an NVIDIA Inception startup—brings domain-specific AI for nuclear to Azure to modernize how the industry manages project workflows and governed data pipelines.

“The nuclear industry has been bottlenecked by documentation burden and regulatory complexity for decades. This partnership means our customers get the secure, scalable cloud deployments they demand. It’s a significant step toward making nuclear power fast, safe, and unstoppable.”

—Kevin Kong, Chief Executive Officer, Everstar

We are also excited to highlight Atomic Canyon, whose Neutron platform is now available in the Microsoft Marketplace, allowing nuclear developers to deploy these capabilities with consistency and control through trusted procurement pathways.

Progress at the pace this moment requires

AI is enabling the energy industry to deliver more power, faster, and safely. This Microsoft and NVIDIA collaboration provides the path to do exactly that for advanced developers, owners, and operators. By turning fragmented, high-variance workflows into governed, auditable systems, we can compress timelines without compromising rigor. By unifying data, simulation, and evidence across design, permitting, construction, and operations, we are accelerating the deployment of firm, carbon-free power while strengthening regulatory confidence and operational resilience.

The AI for nuclear operations collaboration brings together NVIDIA Omniverse, NVIDIA Earth 2, NVIDIA CUDA-X, NVIDIA AI Enterprise, PhysicsNeMo, Isaac Sim, and Metropolis with Microsoft Generative AI for Permitting Solution Accelerator and Microsoft Planetary Computer to create a comprehensive, AI-powered digital ecosystem for nuclear energy on Azure.

Microsoft, NVIDIA, and Aalo Atomics will be presenting this AI-lead industry perspective at CERAWeek 2026 in a session entitled “A Digital Age for Nuclear: Aalo Atomics, NVIDIA, and Microsoft.”

Discover more

Ready to move from ambition to delivery? See how the Microsoft and NVIDIA nuclear for AI collaboration can drive change within your organization.

Contact us to learn more.

The post AI for nuclear energy: Powering an intelligent, resilient future appeared first on The Microsoft Cloud Blog.

This year, Microsoft had a clear focus at DTECH 2026: help utilities move from pilots to production by unifying IT and OT data, applying AI where it measurably improves reliability, affordability, and productivity and do so with the security and governance necessary for critical infrastructure.

Microsoft-led sessions explored moving beyond experimentation to focus on how utilities are turning unified data and AI into repeatable, operational outcomes. The takeaways from DTECH this year point to the next chapter of grid modernization—one defined by execution at scale, not pilots. 

What utility leaders reinforced: Keeping pace with change

Utility leaders consistently pointed to the increasing speed of change across the grid. Planning and operations are being pushed to respond faster as load growth becomes larger, more concentrated, and more volatile. Electrification is reshaping peak demand profiles, while capital programs are under pressure to deliver measurable value earlier—even as timelines continue to compress. 

At the distribution level, operational complexity is increasing. Distributed energy resources, electric vehicles, flexible demand, and new market programs are turning distribution systems into highly dynamic environments that demand better visibility, orchestration, and cybersecurity. Utilities are managing bidirectional power flows, evolving protection schemes, and the reality that smaller, distributed assets can have outsized system-level impacts—raising the bar for visibility, orchestration, and cybersecurity.

As a result, resilience is no longer episodic; it is a daily operating requirement. Fragmented data and manual coordination continue to limit situational awareness and slow response during major events.

Industry leaders were realistic about these constraints. Equipment lead times, workforce availability, and regulatory requirements mean that near-term reliability gains often come from improving how existing assets and systems are planned and operated. As a result, progress is increasingly measured by how effectively insights are translated into operational decisions, supported by secure and scalable platforms.

Trusted data as the foundation for AI in operations

Utilities generate vast amounts of data across assets, outages, telemetry, imagery, work management systems, and customer platforms. In many organizations, this data remains distributed across systems with inconsistent definitions, varying latency, and uneven governance.

These conditions slow analysis, create conflicting views of performance, and limit the ability to move from insight to action. Without a consistent and trusted data foundation, AI initiatives struggle to scale beyond isolated use cases. 

Microsoft is focused on helping utilities establish governed data foundations that support analytics and AI across planning, operations, field work, and customer engagement. By enabling scale across use cases—rather than building one‑off pipelines—utilities can align around shared definitions, apply consistent security controls, and collaborate without duplicative effort. 

This matters because the highest value use cases are inherently cross domain. Outage performance, capacity planning, and major event readiness all depend on data that spans systems and organizations. A unified data foundation allows AI to support these decisions with clarity, traceability, and operational relevance. 

From siloed AI solutions to agentic operations

Another notable theme at DTECH 2026 was the growing interest in agent-enabled workflows. Utilities are looking beyond standalone AI tools toward systems that can support multi-step workflows across planning, operations, and field execution, while maintaining appropriate oversight by subject matter experts across the workforce.

The focus is squarely on practical outcomes. Earlier risk identification, clearer paths from signal to action, and stronger coordination across teams are driving interest in these approaches, as utilities seek to move faster.

Human oversight remains foundational. Operators and engineers expect AI systems that surface options, explain their rationale, and reference trusted data—while operating within clearly defined governance boundaries. In regulated, safety‑critical environments, this human‑in‑the‑loop model must align with role‑based access, operational constraints, and established safeguards.

Partner innovation making modernization deployable

Grid modernization depends on strong ecosystem collaboration. No single entity can deliver it alone. What matters is interoperability—how solutions work together across planning, operations, outage restoration, field productivity, and major event response.

That focus was clear in the announcements from Microsoft and our partners at DTECH 2026:

• Dragos—Microsoft and Dragos announced an expanded partnership focused on helping organizations modernize and secure their cyber-physical operations. By combining Dragos’ OT threat intelligence and detection capabilities with Microsoft’s cloud, AI, and security platforms, utilities can strengthen the safety, reliability, and resilience of the critical systems that power businesses and communities. 
• GE Vernova on Azure—GridOS Data Fabric and DDLR are now on Microsoft Azure, combining GE Vernova’s operational expertise with Microsoft’s cloud, AI, and analytics.
• Hitachi—Hitachi Energy’s Ellipse EAM is being combined with Microsoft Dynamics 365, Microsoft Fabric, Copilot, and Microsoft Foundry to create a unified solution that manages data, analytics, and business operations, supports asset operations, and provides visibility of equipment across entire networks for more reliable services, safer operations, and fewer emergency repairs.  
• Itron—The new Itron Intelligent Edge Operating System (IEOS) Connector for Microsoft 365 Copilot uses trusted grid-edge data to redefine grid edge intelligence by applying AI at scale to optimize operations, enhance predictive insights, and enrich customer experiences.
• Schneider Electric—Microsoft’s AI, cloud, and data capabilities are integrated in the One Digital Grid Platform, enabling operations to move from prediction to execution in minutes.

These developments reflect continued progress toward reference architectures and reusable patterns that reduce bespoke integration and support broader adoption across utility environments.

Security and resilience built into modernization

Security remains a core consideration as IT and OT environments converge and connectivity at the edge increases. Utility leaders emphasized the importance of approaches that function across hybrid architectures and reflect operational realities.

Identity, access management, monitoring, and governance must be consistently applied across cloud, edge, and on‑premises systems. Resilience improves when operators have timely visibility, clear decision paths, and automation that supports established operating practices.

What comes next

DTECH 2026 highlighted a clear direction for grid modernization; utilities are prioritizing:

• Trusted data foundations spanning IT and OT.
• AI and agent-enabled capabilities embedded in operational workflows.
• Secure architectures designed to support reliability, governance, and resilience.

Microsoft will continue to work alongside utilities and industry partners to advance these priorities and support grid operations that can adapt to increasing complexity while delivering reliable outcomes for customers and communities. 

Turn insight into action

• Explore the possibilities of AI transformation with Microsoft
• Read the latest International Energy Agency’s World Energy Outlook
• Learn how to achieve more in the energy and resources industry with trusted data and AI solutions from Microsoft
• Explore the Reinventing the Utility Playbook: AI Agents for Grid Growth, Storm Response, and the Workforce 2.0 DTECH 2026 session
• Learn more about the AI-Powered Utilities: The Next Wave of Innovation DTECH 2026 session

The post DTECH 2026: How Microsoft and our partners are accelerating AI innovation for utilities appeared first on The Microsoft Cloud Blog.

Asia-Pacific’s electric utility sector is undergoing rapid transformation. With nearly 5 billion people—the region accounts for more than half the world’s population,¹ half of global electricity consumption,² and three-quarters of the planet’s coal production and consumption.³ Rising urbanization, economic growth, and climate commitments are driving utilities to modernize infrastructure, expand energy access, and decarbonize grid operations.

At Enlit Asia 2025 in Bangkok earlier in September, more than 12,000 energy professionals gathered to explore these challenges and opportunities. As a proud sponsor, Microsoft—alongside its customers and partners—showcased how AI and digital technologies are helping utilities to build smarter, more resilient electricity networks.

By uniting AI, data, and cloud technologies, we’re committed to driving digital transformation and empowering the energy workforce across Asia-Pacific. Today, we’ll explore key trends shaping the region’s utilities and highlight solutions that are already powering the new energy future with AI.

Five trends shaping Asia-Pacific utilities

Asia-Pacific’s electric utility landscape is shaped by vast geographic diversity and varying levels of market maturity—from advanced economies like Japan and Australia to rapidly developing energy systems in Southeast Asia. Despite these differences, several shared trends are emerging that redefine how utilities plan, operate, and innovate across the region.

1. Population and demand growth

Asia-Pacific’s demographic scale continues to drive electricity demand. Utilities are under pressure to expand capacity, improve reliability, and add renewables—all while managing aging infrastructure and grid complexity.

2. Economic expansion and energy use

Global electricity demand rose by 4.3% in 2024, with continued growth projected through 2027.⁴ Developing economies account for around 85% of additional global electricity demand, with China providing more than half of these gains.⁴ Southeast Asia also remains a key driver with strong industrial and commercial momentum. This growth is tightly linked to gross domestic product (GDP) performance, with emerging markets—primarily in Asia-Pacific, projected to average 4.06% GDP growth through 2035.⁵

3. Carbon intensity and fossil fuel dependence

Coal remains dominant, accounting for 57% of the region’s electricity generation in 2022.⁶ Asia-Pacific has the highest carbon dioxide intensity globally—590g CO₂/kWh versus the global average of 460g CO₂/kWh.⁶ Interest in nuclear and small modular reactors has risen sharply in recent years, as utilities explore low-carbon baseload generation sources.

4. Renewable energy expansion

In the next three years, low-emissions generation is set to rise at twice the annual growth rate between 2018 and 2023.⁷ Solar, wind, and hydro investments are accelerating, supported by policy reforms and regional power trade initiatives.

5. Grid modernization and decentralization

Utilities are investing in smarter grids to accommodate Distributed energy resources (DERs), electric vehicles (EVs), and digital technologies. The shift from centralized to decentralized generation is reshaping utility operations, requiring new approaches to cybersecurity, forecasting, and customer engagement.

Microsoft’s global energy partnerships and powering the new energy future with AI

Microsoft is partnering with leading utilities and technology providers across the region to deliver AI and digital solutions that address operational, regulatory, and grid modernization challenges.

Here are five examples of how we’re helping energy organizations transform:

1. Enterprise knowledge advisor for power plant operations

In partnership with JERA, Japan’s largest power generator, Microsoft helped deploy an AI-powered enterprise knowledge advisor to enhance thermal plant efficiency. Using generative AI, the solution surfaces insights from historical data and maintenance logs, allowing for faster decision-making, predictive maintenance, and real-time troubleshooting.

2. Generative AI for permitting

Permitting clean energy projects can take years and cost millions of dollars. Microsoft’s generative AI for Energy Permitting Solution Accelerator automates document drafting, regulatory analysis, and pre-submission reviews. The solution generates complete environmental filings ready for human refinement—reducing time, cost, and complexity across multiple regulatory environments.

3. Distributed energy resources management (DERM) with Schneider Electric and Pacific Gas & Electric (PG&E)

Together with Schneider Electric and PG&E, Microsoft enables advanced DERMS to orchestrate solar, battery, and EV infrastructure. The joint solution adds Schneider’s advanced distribution management system (ADMS) and Azure AI to optimize DER participation, forecast grid conditions, and support wholesale market operations. The Grid AI Assistant provides operators with real-time guidance and AI-powered resolution strategies.

4. Visual anomaly detection and predictive maintenance

Microsoft’s multimodal generative AI orchestration (MGO) framework combines image recognition, sensor data, and historical records to detect anomalies in grid assets. Energy companies in Asia have deployed this solution to reduce safety incidents, improve response times, and enhance asset reliability—supporting both field crews and control room operators.

5. AI for forecasting and decision support

AI-powered forecasting and decision management solutions are helping utilities in Asia-Pacific streamline operations across asset management, trading desks, and customer engagement. These solutions include advanced renewable forecasting to reduce curtailment and avoid regulatory penalties, generative AI trading platforms to make better-informed decisions in dynamic wholesale markets, and behind-the-meter load management platforms to optimize demand-side resources.

Microsoft for energy and resources

Drive innovation to achieve net zero and deliver safe, reliable, equitable energy for a sustainable future.

Explore solutions

Shaping the future of energy

As Asia-Pacific utilities face rising demand and decarbonization pressures, Microsoft is proud to partner with industry leaders to deliver scalable, secure, and intelligent solutions. From optimizing plant operations to streamlining permitting and managing DERs, our technologies are helping utilities unlock new value and accelerate the energy transition. Together, let’s power the new energy future with AI.

Learn how Microsoft can support your organization’s journey

• Watch our latest webinar, AI for Grid Operations: Smarter Planning and Modeling with Microsoft and ThinkLabs, on demand.
• Read Microsoft’s Work Trend Index Annual Report, 2025: The year the Frontier Firm is born.
• Listen to Darryl Willis, Corporate Vice President, Worldwide Energy and Resources Industry, most recent podcast episode with EPRI Chief Executive Officer Arshad Mansoor.
• Listen to the EPRI Current Podcast with Bilal Khursheed: The Inflection Point: Accelerating Efficiency with AI.
• Explore the possibilities of AI transformation with Microsoft.
• Visit Microsoft for Energy and Resources.
• Read the new International Energy Agency report, Energy and AI.
• Learn more about Microsoft Security for Enterprise.

¹ Population and Development Data, Demographic Changes in Asia and the Pacific, ESCAP
² International Renewable Energy Agency, Asia and Pacific
³ “Asia digs up and burns three-quarters of the world’s coal,” The Economist, April 22, 2019
⁴ Demand, Electricity 2025 Analysis, IEA
⁵ “Emerging Markets: A Decisive Decade,” S&P Global, October 16, 2024
⁶ “Coal dominates Asia Pacific’s generation mix in 2022,” Asian Power
⁷ Executive summary, Electricity 2024 Analysis, IEA

The post Powering Asia-Pacific’s energy future: AI and digital innovation for utilities appeared first on The Microsoft Cloud Blog.

Electricity is no longer just a utility—it’s the backbone of modern life. From the devices in our homes to the data centers powering AI, demand for electricity is surging at a pace our current infrastructure was never designed to handle. As climate goals accelerate electrification across industries and extreme weather events test grid resilience, one truth becomes clear: we can’t afford to build the grid of the future at the pace of the past. And that starts with rethinking how we plan.

In today’s very dynamic environment, technology is needed to make processes even more streamlined, faster, and proactive. Technology can support the planning process to model future demand, quickly assess capacity, and propose solutions in a more real-time environment. If we want to keep pace with the energy transition, we need to move from static studies to dynamic, data-driven planning. That means embracing digital tools, AI-powered forecasting, and collaborative workflows that can compress timelines from years to months.

In June, we hosted the webinar “AI for Grid Operations: Smarter Planning and Modeling with Microsoft and ThinkLabs AI,” bringing together industry leaders to explore how AI is transforming operations in the power and utilities sector. Featuring insights from experts at Microsoft, ThinkLabs, Southern Company, and EPRI, the session highlighted how AI is driving workforce development, boosting operational efficiency, and building more resilient energy systems. Below, we’ve distilled the key takeaways to help your organization understand how AI can unlock new levels of innovation and performance. You can also watch the full on-demand recording of the webinar here.

AI and agent-powered workflows are revolutionizing grid operations

A central theme throughout the discussion—featuring Joshua Wong (ThinkLabs AI), Robin Lanier (Georgia Power, a Southern Company subsidiary), Cameron Riley (EPRI), and Microsoft panelists—was the transformative role of AI in enabling smarter, data-driven decision-making. Utilities are already starting to use AI to forecast the impacts of severe weather on the grid, streamline workflows, and enhance operational readiness.

Robin Lanier, Director of Grid Strategy and Solutions at Georgia Power, emphasized how digital twins can be used to simulate infrastructure virtually. These simulations not only improve training and safety but allow workers to conduct visual walkthroughs and scenario planning in a more risk-free environment. AI is also enabling personalized upskilling by tailoring training to individual employee needs, helping teams quickly acquire relevant skills aligned with evolving roles and career paths. Moreover, it is automating routine tasks, boosting productivity, and preserving institutional knowledge as a large number of experienced workers retire—helping to ensure continuity and resilience in grid operations.

Accelerating grid planning with AI-powered simulations

Josh Wong, CEO of ThinkLabs AI, showcased how his team is pushing the boundaries of grid planning through physics-informed, AI-powered grid simulations. Their technology has dramatically reduced the time required for power flow simulations—from days to just minutes. In fact, ThinkLabs’ solutions can simulate multi-year 8760 (hourly for the year) power flow analysis on over 100 distribution circuits in under five minutes, and automatically generate optimal solutions to grid constraints—demonstrating the immense potential of AI to increase autonomy and adaptability in grid management.

Agentic AI: Automating complex workflows for greater efficiency

Another exciting frontier in evolving grid operations is the use of agentic AI—intelligent agents designed to automate domain-specific business processes. From permitting and contingency planning to weather forecasting and knowledge transfer, these agents are helping utilities scale operations without compromising reliability. Cameron Riley of EPRI discussed how his organization is exploring agentic AI to streamline workflows and develop innovative approaches to grid reliability and resilience. By addressing long-standing challenges with predictive and real-time capabilities, AI is empowering utilities to adapt to increasingly dynamic energy ecosystems. As the sector continues to evolve, it is clear that AI will be a cornerstone of both operational excellence and strategic growth.

Advancing safety, trust, and innovation across grid operations

While the potential of AI in grid operations is undeniable, panelists acknowledged that several barriers still stand in the way of widespread adoption. Microsoft is actively partnering with customers to address these challenges head-on. One of the most significant hurdles is legacy infrastructure—many existing systems were not built with AI integration in mind. Additional concerns include workforce skill gaps, cybersecurity risks, and the inherently cautious pace of technology adoption in critical infrastructure sectors. Robin Lanier, commented that “Ultimately, we have a commitment to making investments to ensure our customers are provided with clean, safe, reliable, and affordable energy.”

Because of these considerations, panelists emphasized the importance of rigorous validation and testing. Pretraining AI models on various contingencies, network configurations, and AC power flow dynamics helps ensure that systems remain robust and reliable even under diverse conditions. Moreover, breaking down organizational silos and fostering cross-sector collaboration is essential to solving the complex challenges facing today’s energy ecosystems. Throughout our discussion, safety, trust, and reliability emerged as foundational pillars for advancing AI adoption. Panelists agreed that utilities must first test AI capabilities in controlled environments to ensure scalability and security before deploying them in mission-critical applications. Microsoft is committed to supporting this journey by offering enterprise-grade infrastructure and governance frameworks that empower partners like ThinkLabs to implement AI solutions at scale—safely and effectively.

Collaboration and commitment to an AI-powered, clean energy future

The path forward is clear: sustained collaboration between utilities, technology providers, and research institutions is vital to powering AI systems—and enabling AI to power the grid in return. AI is not just a technological upgrade; it represents a paradigm shift with the potential to fundamentally transform the power and utilities sector.

By embracing these strategies, industry leaders can unlock new efficiencies while maintaining a steadfast commitment to safety, reliability, and sustainability. Microsoft remains deeply invested in aligning cutting-edge AI technologies with the fundamental need for clean, reliable electricity. Through this collaborative framework, utilities can confidently navigate toward a future where operational efficiency and environmental responsibility go hand in hand.

AI for Grid System Planning

Find out how real-time models and analytics can help grid operators make complex decisions faster as load shifts and grows.

Watch the webinar

• Explore the possibilities of AI transformation with Microsoft.
• Visit Microsoft for energy and resources.
• Read the new International Energy Agency report, Energy and AI.
• Learn more about Microsoft Security for Enterprise.

The post Driving the grid of the future: How Microsoft and our partners are reenvisioning energy with AI appeared first on The Microsoft Cloud Blog.

The proliferation of distributed energy resources (DERs)—small-scale units of power generation and storage that operate locally and are connected to larger grids at the distribution level—is also leading power providers to rethink how they operate. DERs could dramatically reduce the need for centralized power generation, but they could also push traditional operational technology (OT) environments to their limits and create heightened need for security.  

A modern, flexible, and secure grid with unified information technology (IT) and OT will become increasingly important for grid operators as consumers add solar panels, electric vehicles, or battery storage and seek to connect to the grid. In fact, a recent survey conducted by Guidehouse shows that 61% of utilities executives believe that utility infrastructure investments should prioritize increased flexibility to improve energy system resilience². AI has the potential to boost resilience by helping providers forecast and manage load demand, maintain power balance, enhance security, support predictive analytics and maintenance, and optimize workforce management and dispatch, among many other use cases. 

Power and utilities companies aren’t alone in recognizing the benefits of AI. A recent study on AI adoption shows that over the next three years, 92% of companies will increase their AI investments, particularly in generative AI; yet only 1% consider their AI deployment to be “mature,”³ indicating there’s still tremendous opportunity to drive continued AI transformation for improved business outcomes. Critically, employees are ready for this change. In fact, three times more employees are using generative AI for 30% or more of their work than their leaders imagine.⁴ It’s a sign that for many companies, the AI transformation is already underway, and teams are eager to unlock new levels of creative potential and productivity.  

An adaptive cloud approach helps streamline operations and provide critical power service 

Through comprehensive cloud, data, and AI offerings, Microsoft and its global partner ecosystem support power and utility providers as they digitally transform and drive sustainable business growth while meeting customer demand. The adaptive cloud approach seamlessly integrates IT and OT, bringing together on-premises control systems and edge intelligence with cloud-scale analytics. This lays the foundation for unlocking the power of their data, further allowing them to utilize AI to meet increasing energy demand and solve their most complex challenges.  

Take Uniper, for example. As the world’s largest power generation company, Uniper needed a solution to help standardize IT and OT so it could manage all applications in a uniform manner. An adaptive cloud strategy helped standardize IT and OT environments, launch new services faster, and optimize performance.  

Emirates Global Aluminum (EGA) has another adaptive cloud success story. EGA’s on-premises environment couldn’t deliver the level of flexibility needed to manage data-intensive operations with scalable computing infrastructure. A hybrid approach allowed them to move part of their server base to the Microsoft Azure public cloud and another part to run hybrid at the edge with Azure Local. This helped optimize latency, support advanced AI and automation solutions, and offer sustaining commercial savings by applying intelligence at the edge.  

By embracing adaptive cloud, power and utilities providers can future-proof their operations and build the resilient energy systems of tomorrow—without compromising compliance, security, or operational continuity.   

Sharing success stories and insights at DISTRIBUTECH  

In an era where the imperative for clean, reliable, and accessible energy has never been greater, Microsoft relies on the knowledge and innovative potential of its partners and customers to help spearhead progress. The success stories mentioned above are made possible through the collective efforts of a complete partner and customer energy ecosystem. The company looks forward to connecting with this ecosystem at important energy industry events like the upcoming DISTRIBUTECH International 2025 conference, where it’ll share the latest in AI-powered insights at the annual energy transmission and distribution event. Held in Dallas, Texas from March 24 to 27, 2025, this year’s event promises engaging speaking sessions, exhibitions, and demos across trending topics like energy storage, transportation electrification, distributed energy resource management, and, of course, the latest on AI.  

Microsoft will join its energy partners and customers on stage and at the Microsoft booth as it highlights its work to accelerate the energy transition and address some of the biggest challenges across the power and utilities sector. It’ll speak to some of these challenges at its thought leadership sessions throughout the week, as well as highlight the opportunities to utilize cloud and AI capabilities to tackle them. These conversations couldn’t be timelier, as issues like cybersecurity and threat recovery impact power and utilities providers around the world every day. To that end, Microsoft Energy and Resources leaders will participate in keynote sessions on topics like cybersecurity in the power and utilities sector. They’ll dive into the evolving threat landscape, the intersection of regulation and innovation, and the key measures utilities can take to safeguard critical infrastructure. Microsoft will also take part in a keynote session on transforming power and utilities with AI, where the conversation will revolve around the ways in which AI-powered solutions are revolutionizing utility operations.  

Highlighting Microsoft’s partner ecosystem 

Microsoft will join several energy and technology partners at DISTRIBUTECH to further the discussion on global collaboration and partnership as critical aspects of the energy transition. It will serve as a guest speaker for Schneider Electric’s Knowledge Hub session on grid technologies, diving into the ways that AI and digital transformation are revolutionizing grid operations and management. The occasion marks another milestone in the deep Microsoft partnership with Schneider Electric as we collaborate with the company on the release of its new digital grid solution. Powered by Azure and AI, the new solution is designed to equip utilities with the digital tools to navigate modern energy challenges and support more resilient energy infrastructure. 

Microsoft is also working with longtime partner Itron to empower utility companies with data and intelligent analytics. Itron is integrating Microsoft Copilot technology into its Intelligent Edge Operating System (IEOS), a global data platform running on Azure, to help utilities to use natural language queries to more easily access essential data and insights to accelerate decision making, support innovation, and streamline repetitive tasks. By utilizing Microsoft AI solutions, Itron helps its customers transform complex data interactions into simple, intuitive processes, significantly boosting operational efficiency. 

In addition, Microsoft is collaborating with Siemens Energy’s Industrial Cyber and Digital Trust teams within Digital Solutions to enhance cybersecurity in the energy sector. By integrating Microsoft’s leading cybersecurity capabilities with Siemens Energy’s advanced solutions in the gas turbine business, we are strengthening resilience against evolving threats. This partnership underscores our shared commitment to securing critical infrastructure and driving digital trust across the industry. 

Microsoft also recently announced a collaboration with EPRI (Electric Power Research Institute) through the Open Power AI Consortium to advance AI innovation in the electric sector. This partnership focuses on developing industry-specific AI and generative AI use cases, creating responsible deployment frameworks, and establishing an AI sandbox on Azure for testing and refinement. By fostering collaboration among utilities and key stakeholders, we aim to drive continuous improvement, knowledge sharing, and real-world impact across critical infrastructure. 

Microsoft will co-host a breakfast roundtable with Accenture along with our other energy ecosystem partners AVEVA, IFS, Itron, and Schneider Electric to discuss the keys to unlocking return on investment (ROI) and overcoming barriers to scale AI and digital technologies. Together with utility customers, they will discuss data challenges, regulatory issues, and organizational barriers that utilities face in their data transformation journeys.

Microsoft hopes to see many of you at DISTRIBUTECH 2025 as they share energy success stories and learn how others are driving positive change for a new energy future.  

Explore more energy solutions and resources  

• Read the Microsoft Industry Blogs: Energy and resources to learn about themes and actions critical for energy transition.  
• Learn how to achieve more in the energy and resources industry with trusted data and AI solutions from Microsoft.  
• Watch this webinar about AI-powered forecasting in power and utilities with Microsoft Energy and Resources leader Hanna Grene and Amperon Chief Revenue Officer Alex Robart 
• Check out this webinar on how AI solves real utility challenges, featuring Microsoft’s Laurent Boinot 

Sources:

¹ 2025 Power and Utilities Industry Outlook, Deloitte, December 2024. 

² The Power Industry: Presently and Projected, Guidehouse, July 2024. 

^3,4 Superagency in the workplace: Empowering people to unlock AI’s full potential, McKinsey & Company, January 2025. 

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To address these growing challenges, energy and resources leaders are increasingly turning to digital technology solutions. By leveraging AI-driven insights and cloud-based operational technology (OT) systems, energy operators can optimize grid management, strengthen cybersecurity, and respond faster to operational inefficiencies. 

In the area of predictive maintenance, AI can analyze historical equipment performance and environmental data to forecast potential equipment failures, helping utilities avoid costly downtime while enabling uninterrupted service. For example, JERA developed an AI-based predictive detection application that provides everyday remote monitoring of power plants, enabling early detection of equipment issues and reducing unplanned outages.

“By enabling a 24-hours-a-day remote monitoring service, we will be able to provide value by preventing potential problems and by improving power plant availability through quick identification of problem causes. DPP’s primary role is to contribute to the stable supply of energy and sustainable power plant operations through transformations that utilize digital technology and data.”

Hiroaki Kamei, Executive Officer of the Digital Power Plant Promotion Group, O&M Engineering Strategy Division

This scenario provides a glimpse into the many ways AI is quickly becoming one of the most impactful tools for energy organizations and workers. Across the utility workforce—from engineering and grid operations to customer service and finance—employees are also seeing increased productivity with generative AI technology as they use tools like Microsoft Copilot to streamline tasks such as drafting emails, summarizing meetings, conducting research, analyzing data, generating manuals, and preparing presentations. This enables them to focus more on high-value work that fuels industry-wide growth and collaboration, accelerating the energy transition. 

Beyond task productivity, generative AI is transforming how utilities manage operations at scale. For example, National Grid is leveraging Microsoft Copilot and Azure to assist with automation, document management, and report generation across regulatory, finance, and legal operations, helping the company drive efficiencies in its mission to achieve net-zero goals. According to Shannon Soland, Chief Technology Officer at National Grid, “Microsoft Copilot is really going to be a difference maker for National Grid,” allowing the company to innovate rapidly with AI-powered solutions.  

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Enhancing cloud security with AI

AI is not just a tool for optimization—it’s becoming essential for energy security and operational resilience. As energy organizations modernize their systems and integrate new technologies to streamline workflows and improve operations, there’s a growing emphasis around overall security posture. That is why Microsoft is working closely with energy customers and partners to provide intelligent and scalable cybersecurity solutions that help set the stage for successful AI adoption and continued innovation—so they can focus on what matters most: meeting the world’s growing energy needs while ensuring a secure, sustainable, and affordable supply.

Solutions like Microsoft Copilot for Security are enabling energy organizations to identify threats faster, strengthen risk mitigation strategies, and respond to incidents more efficiently. For example, Uniper, a leader in the energy transition, has integrated Copilot for Security to manage the growing number of phishing attempts and hacker attacks they face as an operator of critical infrastructure.

“Copilot for Security immediately flags incidents, allowing us to identify risks up to twice as fast, assess them right away, and take the appropriate action.”

Damian Bunyan, Chief Information Officer of Uniper 

Routine security tasks, which used to take hours or days, are now handled in minutes through AI and automation, improving security response times and helping Uniper focus on their broader goal of becoming climate-neutral by 2040. 

We’ve embedded Copilot directly into the Microsoft Security stack, allowing energy customers to tap into built-in AI capabilities and industry-leading threat intelligence—regardless of the solutions they use. It’s all part of our effort to empower human defenders with AI tools and capabilities that provide an advantage against some of the energy industry’s greatest challenges.  

Microsoft partnerships help the energy industry embrace the future of work

Supercharging human ingenuity with advanced technology is just one way to drive a more sustainable, reliable, affordable, and secure energy supply. Another critical piece is global collaboration and partnership.

Microsoft’s collaboration with leading global systems integrators (GSIs) is driving significant innovation in the energy sector. Partners like Accenture, Avanade, EY, and PwC helping utilities globally leverage AI and Azure-powered technologies to modernize and enhance productivity. Accenture and Avanade, early adopters of Microsoft Copilot, are accelerating value by delivering intelligent, industry-specific solutions that empower workforce. Similarly, EY and PwC are working closely with Microsoft to provide cutting-edge tools that enable energy providers to streamline operations and strengthen their digital transformation strategies. 

Among Microsoft’s key collaborators is IFS, which plays a crucial role in transforming asset management and enterprise resource planning (ERP) for energy companies. Exelon, the largest energy delivery company in North America, is leveraging IFS technology to improve operational visibility and streamline the management of its extensive asset base across six utility businesses. According to Rob Biagiotti, Vice President of Assets and Core System Projects at Exelon, the company chose IFS for its cloud-based, agile platform that could meet the evolving needs of their business. By enabling Exelon to efficiently manage the full lifecycle of assets and integrate with their existing technology, IFS is helping them achieve their strategic goals of delivering reliable, affordable energy to over 10 million customers.  

GE Vernova has developed a solution underpinned with advanced AI models to improve wildfire risk mitigation, with their solution available on Azure to provide sophisticated analysis and better decision-making for environmental planning and response. Meanwhile, Schneider Electric’s DERMS EcoStruxure platform, deployed on Azure, is advancing distributed energy resource management, increasing grid flexibility and efficiency. This platform has been successfully implemented at Pacific Gas and Electric (PG&E), where it’s driving significant value by optimizing distributed energy resources and improving grid management across their network.

These are just a few of the many partners Microsoft collaborates with across the energy sector. The scale and complexity of today’s energy challenges make partnership essential; no single organization can drive this transformation alone. By working together, we can accelerate innovation and ensure a secure, sustainable, and resilient energy future. 

Sharing industry insights at Enlit Europe 2024 

We are excited to discuss the transformational power of technology and share new AI innovations with our partners as the AI sponsor of Enlit Europe 2024 at Fiera Milano di Rho in Milan, Italy. This opportunity enables us to deepen our existing partnerships and forge new ones with energy organizations from around the world. The event will run from October 22 to 24, 2024 and will be attended by 15,000 guests, including over 700 international exhibitors and 500 speakers from energy industry leaders.  

The Microsoft Energy and Resources Industry team will attend Enlit Europe 2024 to exchange insights on new technologies, discuss solutions to industry challenges, and highlight key achievements with our industry partners. On day two of the conference, we will feature Microsoft Copilot demos at the Digitalization Hub, offering a firsthand look at how AI can transform the way you work. In addition to demonstrating the benefits of Copilot, our team will be featured on several panel discussions and presentations on critical topics for the global power and utilities community.

Continuing to innovate across the energy sector with transformative technologies 

As technology advancements open doors for energy solutions, we’re eager to continue partnering with industry leaders to challenge the status quo with innovative approaches to some of the world’s toughest energy dilemmas. For many organizations, this begins by shifting internal conversations and establishing a data-driven culture that empowers people to solve problems using data. That’s why we work with leaders across the industry to build digital transformation strategies and modernize data management approaches so they can get the most value from their data through advanced AI and automation capabilities.

Explore this ever-evolving world with us at Enlit Europe 2024 and engage with the leading minds at the forefront of industrial change. Don’t miss out on the critical discourses, thought-provoking panels, and our Microsoft Copilot Hub demo station, where you can learn more about making the most of this everyday AI assistant in your organization. Join the Microsoft Energy and Resources Industry team as we bring new solutions to light and exchange ideas with energy pioneers from the world over. We hope to see you in Milan.  

Learn more about Microsoft for energy and resources 

• Visit the Microsoft for energy and resources page.
• Read the Microsoft Industry Blogs: Energy and resources to learn about critical actions for energy transition.
• Listen to the podcast AI for power and energy with Laurent Boinot where a Microsoft power and utilities leader discusses the intersection of AI and energy infrastructure.
• Read a Microsoft leader’s interview and gain perspective on how AI is a driving force in accelerating the energy transition.
• Read this new article on Power Change: Applying GenAI for Strategic Transformation in Utility Analytics.
• Watch our on-demand webinar, Rethinking cybersecurity in a renewable-powered energy system.
• Learn about Microsoft Security solutions and sign up for news and insights from Microsoft Security.

¹ European Commission, Future EU power systems: renewables’ integration to require up to 7 times larger flexibility, June 26, 2023.

2 Enisa, Cyber Europe tests the EU Cyber Prepardness in the Energy Sector, June 20, 2024.

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A growing need to transform security

Chief Information Security Officers (CISOs) at power companies know this reality well. They’re tasked with managing a complicated portfolio while protecting against cyber risks from both insiders and nation-state actors. Left unresolved, these challenges create a ripple effect across the enterprise and lead to issues like:   

• Increasingly complex environments: Widespread digital adoption combined with evolving customer preferences, decentralized energy generation, and a changing workforce are driving utility providers to rethink their services and business models to help increase flexibility and maintain a resilient grid. In a recent survey conducted by Guidehouse and Public Utilities Fortnightly, 61% of respondents agreed that increasing flexibility to improve energy system resilience is the highest priority outcome for utility investments today.²
• Tool fatigue: Many power companies work with hundreds of disparate management tools that are costly to manage and limited in cross-visibility. These tools must be integrated and maintained by teams with the right skillsets. As tools are added or replaced and personnel come and go, companies face the inevitable costs of re-skilling and new integrations.
• Technical debt: While many utilities are designing new solutions in support of energy transition and the grid of the future, they still rely heavily on legacy infrastructures that carry significant tech debt. These legacy systems increase cybersecurity and operational risks as well as operational expenses through extended support costs, timelines, and integration complexities. Research shows companies pay an additional 10 to 20% to address tech debt on top of project base costs.³  

Modernizing infrastructure is costly and not easily adaptable as the risk landscape evolves. In fact, 59% of cybersecurity teams identify integration of legacy operational technology (OT) and modern information technology (IT) systems as their biggest challenge to securing OT.⁴ If you’re a CISO, how do you solve the challenge of securing both IT and OT against modern and fast-changing threats? 

The answer is to work with technology partners who not only understand threat actors around the world, but who also recognize the business risks and operational concerns across the industry. 

Increasing security and efficiency without sacrificing value 

With a unified security stack running on the Microsoft Cloud, utilities can significantly reduce the number of tools they manage every day for lower costs, time-savings, and better insight into IT and OT environments.  

For example, Turkish energy provider Enerjisa Üretim partnered with Senkron.Energy Digital Services to build Senkron ROC, a remote operations center that represents a critical piece of becoming cloud-native. Knowing that a single cyberthreat could shut down operations, Enerjisa Üretim also established its Operational Technology-Specific Security Operation Center (OT SOC), which relies on Microsoft Defender for IoT and Microsoft Sentinel to operate around the clock and process 3.3 million security events daily.   

The IBM Maximo Application Suite on Azure for asset operations and maintenance is another example. High performance and ultra-low latency combined with the multi-layered security capabilities of the Microsoft Azure stack provide a foundation for secure analytics that boost operational resiliency and reliability. With those advanced security features, utility providers can scale their operations to handle varying workloads without compromising operational security.  

Security solutions to meet your needs 

With Microsoft Security services, customers can leverage the latest technologies and deep industry understanding to enhance their security posture today. Microsoft Defender for IoT offers a complete inventory and continuous monitoring of connected assets across vendors and protocols; Microsoft Purview can secure and govern data across your entire estate while helping to reduce risk and meet compliance requirements; and Microsoft Sentinel provides enterprise-grade intelligent security analytics that help detect previously undetected threats and minimize false positives.  

Microsoft security solutions can also offer improvements across key use cases, including: 

• Augmentation of security operations centers (SOCs): Microsoft security solutions empower SOCs with cloud-native capabilities that enable faster detection and response times—even automating entire responses to security events. Machine learning, AI, and advanced analytics perform the heavy lifting so SOC workers can clarify what’s happening in the SOC environment and focus on the highest-priority events. Our unified security platform eases tool fatigue in SOCs with solutions that work together seamlessly for optimal visibility and efficiency. Solutions such as Microsoft Defender Experts for XDR and Microsoft Incident Response allow for expanded capabilities to support the SOC analysts in their mission.
• Business continuity and disaster recovery: Microsoft security solutions provide automated backup processes that are both scalable and cost-effective, and they can be integrated with on-premise data protection solutions. Our solutions include features like encryption and multi-factor authentication, which protect data during the backup and recovery process and help keep sensitive information secure. This holistic approach helps utility organizations quickly recover from data loss incidents, minimizing downtime and maintaining business continuity. 

Supporting the energy customer and partner ecosystem for a secure future 

To support continued innovation in data security and cloud adoption, we collaborated with the Idaho National Laboratory (INL) and the Department of Energy’s Grid Deployment Office on an initiative for seamless integration of cloud technology into the grid of the future. Now in its pilot phase, the Cirrus cloud feasibility assessment tool (Cirrus) offers strategic guidance on how to prepare for, or deploy, a cloud solution responsibly, with the ultimate objective to strengthen the resilience and future adaptability of a decarbonized electric grid.  

Built on the security and reliability of Azure, the online version of Cirrus is also accessible through independent platforms with a license. The tool provides valuable insights to integrators, stakeholders, and operators by clarifying goals, future plans, and risk tolerance.  

With visual outputs like key performance indicator (KPI) graphs and consequence diagrams, Cirrus offers contextualized understanding, helping users prioritize critical systems and data based on potential benefits and risks associated with cloud disruptions. Additionally, Cirrus incorporates threat detection and alerts, leveraging Cyber-Informed Engineering (CIE) principles to empower organizations to make risk-informed decisions and address high-consequence events. 

Opportunities on the horizon with AI 

It’s an exciting time for the industry as AI creates tremendous potential for energy companies to increase their security posture.  

Imagine equipping workers with Microsoft Copilot for Security to help them identify threats earlier, build their risk mitigation skills, and respond to incidents faster. What took hours or days to complete can now be finished in minutes with AI. The efficiency is about more than labor costs. Every minute that goes by gives attackers more opportunity to wreak havoc across the board.  

With AI advancements analyzing trillions of security signals daily, together we can build a safer, more resilient digital energy ecosystem.  

Learn more with Microsoft for energy and resources 

Ready to dive deeper? Don’t miss our webinar, Rethinking cybersecurity in a renewable-powered energy system on October 10, 2024, where we will be sharing how leading energy companies are using the power of technology to safeguard their businesses. Read more about the webinar and sign up to attend.  

• Visit the Microsoft for energy and resources page.
• Read the Microsoft Industry Blogs: Energy and resources blog to learn about themes and actions critical for energy transition.
• Learn about Microsoft security solutions.
• Read more from the Microsoft Digital Defense Report 2023.
• Check out the Microsoft Defender family of products.
• Visit our Microsoft Copilot for Security Blog.
• Sign up for news and insights from Microsoft Security.

¹ Microsoft Digital Defense Report, October 2023.

² The Power Industry: Presently and Projected, Guidehouse, July 2024.

³ Breaking technical debt’s vicious cycle to modernize your business, McKinsey & Company, April 2023.

⁴ How is cyber innovation disrupting the energy sector and critical infrastructure?, World Economic Forum, October 2023.

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To ensure that no one is left behind amidst rapid change, resolving the energy trilemma is a top priority for the industry with a focus on decarbonization, security, and reliable access to affordable energy.

Microsoft is dedicated to helping drive these changes. Our mission to empower every individual and organization on the planet is reflected in our sustainability commitments: To be carbon negative by 2030, and by 2050 to remove from the environment all the carbon the company has emitted since it was founded in 1975.

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We recognize that the future energy mix will be based on cleaner hydrocarbons and renewables, and we are working hard to make that vision a reality. The world needs to invest in more low-carbon energy and infrastructure to meet growing demand and offset the decline of oil production, which falls by 3% to 4% annually.² From technology innovations like generative AI to global collaboration across the energy industry, we are working hard to help drive global change and make that vision a reality.

I’d like to highlight some of those efforts, which include joining other changemakers at CERAWeek 2024 and partnering on a broad range of exciting initiatives.

Driving global change

To increase energy resilience based on cleaner hydrocarbon and renewables, we need innovations and collaboration across the globe. Last month at CERAWeek 2024 in Houston, Texas, CEOs, policymakers, financial communities, and technology leaders gathered to offer insights into the roadmap of this multidimensional energy transition.

We shared insights with industry partners and other global energy stakeholders on complex challenges and multidimensional strategies for energy transition. Microsoft leaders across energy, sustainability, cloud and AI, and security addressed a wide range of topics including the transformative impact of AI and other technologies.

CERAWeek 2024 takeaways

You can read more about the event and Microsoft speakers in last month’s energy blog on enabling energy transformation with AI. Key takeaways included the role of AI in creating a sustainable future, the multifaceted approach required to decarbonize electricity grids, carbon capture, methane mitigation, green hydrogen, and other strategies for addressing climate change. Strategies include nuclear licensing and the AI-methane framework developed with Accenture that brings point solutions together through a strong, affordable digital platform and an ecosystem of partners for end-to-end methane management.

You can read more about how Duke Energy teamed with Accenture and Microsoft to innovate a pioneering solution to meet goals for curbing methane emissions and potentially advance industry and regulatory standards.

Other distinguished speakers at CERAWeek 2024 included Accenture’s Chair and CEO Julie Sweet and Microsoft co-founder and philanthropist Bill Gates. Julie Sweet spoke about challenges and approaches for achieving decarbonization, the need to speed adoption of generative AI in the energy sector, and to dream big to advance the energy transition. She noted human innovation and participation are as important as the technology and data platform driving AI transformation.

Bill Gates discussed emerging clean technologies for investment and deployment, including nuclear and fusion energy, and carbon capture and storage (CCS). He also urged utilities to prepare for rising AI adoption, which he anticipates will increase power consumption, impacting chip makers and electricity cost. This was just one of many discussions at CERAWeek on the need to address AI energy use.

Supporting sustainable AI

During the past year, the pace of AI adoption has accelerated significantly, ushering in groundbreaking advances, discoveries, and solutions with the potential to help address humanity’s biggest problems. Alongside the incredible promise and benefits of AI, we recognize the resource intensity of these applications and the need to address the environmental impact from every angle.

In line with our commitment to responsible AI and our ambitious sustainability commitments, we’re determined to tackle this challenge so the world can harness the full benefits of AI. There are three areas where we’re deeply invested and increasing our focus. The first is optimizing datacenter energy and water efficiency. The second is advancing low-carbon materials, creating global markets to help advance sustainability across industries. And the third is improving the energy efficiency of AI and cloud services, empowering our customers and partners with tools for collective progress.

With AI we are enabling more efficient energy transmission and integration of renewable power. LineVision, an AI-enabled transmission line monitoring solution for expanding the capacity of existing overhead powerlines, is one of many Microsoft partners helping to accelerate the deployment of clean technology and a company which the Microsoft Climate Innovation Fund has invested in. After successfully deploying LineVision Dynamic Line Rating in the United States, global energy company National Grid implemented the technology in Great Britain. The technology has the potential to unlock enough additional capacity to power more than 500,000 homes and save an estimated GBP£1.4 million (US$1.7 million) annually.

Powerful partnerships for transformative solutions

Microsoft and its partners underscore the value of collaborating to accelerate the energy transition in a fair and orderly manner while addressing climate challenges. It is no longer about point solutions, but an end-to-end energy value chain driven by digital and AI which will help us move forward in a rapidly changing world. Recently, EDP Renewables and Volt Energy announced their collaboration with Microsoft to help under-resourced communities build climate resistance.³ Another clean energy initiative announced during CERAWeek between Microsoft, Google, and Nucor Corporation intends to accelerate development of nuclear, next-generation geothermal, clean hydrogen, and long-duration energy storage.⁴

Northern Lights, a partnership between the Norwegian government, Microsoft, and energy firms Equinor, Shell, and Total aims to standardize and scale CCS across Europe. A new CSS plant is expected to process up to 1.5 million tons of liquid CO2 annually and more than 100 million tons over time.

In the United States, Conservation Science Partners, bp, and Microsoft have partnered to create a digital platform for environmental and biodiversity monitoring in Washington state. Called the Cherry Point Refinery, the solution shows how technology can advance our understanding of ecosystems and enable sustainable practices. Other projects include accelerating permitting processes, reducing risk and capital for implementation of carbon capture projects, helping enable the sequestration process for permanent storage with companies like SLB, and supporting environmental credit services.

The future of clean energy and sustainability

I also want to recognize some amazing, underrepresented climate tech founders and CEOs featured at the Microsoft Agora House at CERAWeek who are driving the future of clean energy and sustainability. If it takes a village to raise a child, it will take companies of all sizes and backgrounds to address the growing need for energy and decarbonization by simultaneously meeting goals for energy security, accessibility, affordability, and climate change: Adrienne Pierce (New Sun Road, P.B.C.),  Celine King (GreenIRR Inc.), Chidalu Onyenso (Earthbond), Christie Obiaya (Heliogen), Donnel Baird (BlocPower), Jhana Porter (Frakktal), Liz O’Connell (Arolytics), Nicholas Flanders (Twelve) and Steph Speirs (Solstice).

As part of our commitment to supporting the development of cutting-edge technologies to advance the energy transition, Microsoft is also proud to partner with Greentown Labs and Browning the Green Space’s ACCEL program to fund and mentor the next generation of underrepresented founders. Innovation is the key to solving the global climate challenge, and that innovation must be inclusive and equitable. Energy resilience depends on us all to come together to deliver reliable, accessible, and affordable access to a mix of cleaner hydrocarbons and renewable energy. Our complementary goals for achieving carbon-free energy by 2030 and empowering people and businesses to achieve more goes beyond technology.  

The complex sustainability challenges the world faces today require multi-sector, multidisciplinary collaboration.

We’re not only providing productivity applications, cloud capabilities, cybersecurity, and innovative technologies like AI for end-to-end digital platforms, we’re also honored to be partners and collaborators for accelerating a more secure, equitable and sustainable future.

Learn more about Energy and Resources solutions with Microsoft

• Microsoft for Energy and Resources
• Accelerating sustainability with AI
• CERAWeek 2024 
• COP28: Outcomes and Next Steps
• Transformative AI solutions powering the energy and resources industry

¹ The return of energy security | S&P Global

² World Energy Outlook 2023 Executive Summary, IEA

³ EDP Renewables North America and Volt Energy Utility Announce Solar Project with Microsoft Focused on Environmental Justice

⁴ Google, Microsoft, and Nucor announce a new initiative to aggregate demand to scale the adoption of advanced clean electricity technologies

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In nearly every conversation I have with industry executives, we discuss the headwinds facing the industry from inflation and supply chain constraints to ambitious policy goals, rising cybersecurity risk, and extreme climate events. Yet no matter how large or complex the challenges are, we always turn to opportunity, solutions, and how we will accomplish more together.

This was exactly the tone at IEEE Grid Edge 2023 with leaders from Eaton, Landis+Gyr, and Siemens. We discussed the accelerating transition towards a digital grid, the importance of collaboration across disciplines, the leap-forward potential of generative AI, and the necessity of partnerships to turn our toughest challenges into our greatest successes.

As we head into summer, I’m excited to share highlights from this past spring including a large language models (LLM) use case at Ontario Power Generation, key takeaways from DISTRIBUTECH 2023, and how our partners are restoring power to communities impacted by extreme weather events. We also launched two new video series with recent expert speakers covering policy and partnerships—you won’t want to miss them.   

Ontario Power Generation transforms operations with ChatGPT

ChatGPT provides real solutions to real challenges that the power and utilities sector is facing. Leading energy companies are already harnessing the power of generative AI and LLM to improve productivity, safety, and performance. Ontario Power Generation worked closely with Microsoft to implement Microsoft 365 infused with AI capabilities. Innovations include an AI-powered chatbot called ChatOPG designed to communicate with employees using natural language processing. ChatOPG functions as a digital personal assistant, answering specific questions on topics ranging from IT support and HR processes to creating step-by-step troubleshooting plans based on past equipment failures, saving staff time and helping to connect them with essential information.

The power of partnerships at DISTRIBUTECH 2023

Earlier this year at DISTRIBUTECH 2023 in San Diego, the Microsoft Energy team joined customers, partners, and industry leaders to discuss electric vehicle integration, substation automation and renewable energy optimization, and much more.

We showcased the Microsoft technology platform and innovations with 12 partners at our booth including Accenture, Avangrid, Awesense, Bentley, Cognite, EnXchange, eSmart Systems, InnovationForce, Itineris, Itron, Neudesic, NODES, PXiSE, Schneider Electric, Sonata, TerraPraxis, Thread (Airtonomy), and Uptake. Together, we showcased what the future holds for data analytics, grid modernization and grid edge technologies, digital workforce enablement, collaboration, and cybersecurity.

It was no surprise that renewable energy management and accelerating the energy transition were top of mind and took center stage across all sessions. Imperatives include grid modernization, Distributed Energy Resource Management Solutions (DERMS), Advanced Distribution Management Systems (ADMS), and the need to harness digital technology to achieve these transformative goals.

Another important topic was improving digital customer engagement and robust cybersecurity. Across initiatives, gaining actionable insights from huge volumes of data was recognized as essential for addressing the grid’s future resiliency, digitalization, and decentralization.

Accelerating to net zero with Portland General Electric and InnovationForce

To meet aggressive decarbonization targets for 2030, Portland General Electric (PGE) needed a technology platform that could exponentially increase the volume and quality of ideas in its innovation program. PGE turned to InnovationForce for a revolutionary platform based on Microsoft Cloud technologies that helps enterprises innovate faster while reducing the time spent per person. The team is testing a wide range of digital transformation technologies including digital twins, augmented reality (AR) and virtual reality (VR), drones, automation, grid edge intelligence, new sensing technologies, and transformation technologies.

More than 50 use cases are being tested, with learnings documented and shared in an Innovation Hub with dashboard reporting. The project has already vetted ideas that have identified as much as USD500 million in CAPEX and USD500 million in OPEX savings and avoided (estimated over 20 years) by use of more affordable, disruptive digital technology.

Bringing cleaner energy to disaster response

From decarbonization to disaster-recovery, alternative energy sources enable resilience. Based in New Orleans, Louisiana, the Footprint Project is a nonprofit organization that deploys solar-powered resources to communities impacted by catastrophic weather events. The nonprofit teamed with Schneider Electric, a leading Microsoft Cloud Partner and sustainability leader. The Footprint Project’s microgrids, which combine power from multiple sources, collects data from solar generators using Schneider Electric’s microgrid technology built on Microsoft Azure.

Time magazine included Footprint’s microgrids on Time’s List of Best Inventions of 2022, and the partnership was featured at the World Economic Forum’s annual meeting in January 2023. The work was also highlighted as part of the Microsoft #BuildFor2030 Initiative for its impact in helping advance the United Nations Sustainable Development Goals.

The work we do with our energy customers and partners underscores the power of innovation and how technology is boosting momentum for cleaner energy in the power and utilities sector. To meet global demand for safe, reliable, and clean energy, Microsoft will continue to partner with the energy industry on innovative solutions that accelerate the transition to a more sustainable future.

Stay current on energy trends with The Short Circuit and Top Trends in Energy video series

• In the first episode of The Short Circuit, Darryl Willis, Microsoft’s Corporate Vice President, Energy and Resources Industry, interviews special guest Tom Deitrich, President and CEO of Itron. A global leader in the power and utilities sector, Itron is driving some of the most significant advancements in smart meters and smart grids to enable a resilient, secure, and low-carbon power grid. To hear about ways that data and analytics are shaping the energy transition, watch the interview on YouTube. Make sure to subscribe to the channel and click the bell for alerts on new videos including discussions with Ontario Power Generation (OPG) and Constellation.
• We also just launched the Top Trends in Energy video series and I was pleased to be joined by the CEO of GridWise Alliance Dr. Karen Wayland to talk about Modernizing the energy grid. Learn how the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) in the United States create opportunities for investment in digital infrastructure and discover how companies are implementing new technologies, data-driven approaches, and investment strategies to manage the growing demand on the grid. As more technology is added to the grid, more data will be generated, making cloud storage and data analytics critical components of grid modernization.
• In the episode Harnessing the data revolution in the power and utilities industry with Bilal Khursheed, Director, Americas Power and Utilities Industry, Microsoft, and Gina Weber, Utility Analytics Institute Managing Director, learn how data analytics serves as a bridge between technology, real-world applications, and customer service. By adopting a data-driven approach, power and utilities companies are making better decisions, increasing efficiency, and boosting security.
• In Building momentum in the transition to clean energy with Chris Arend, Business Applications Sales Executive—South Region, Microsoft and Bill Kent, Executive Director at the Association of Energy Engineers, hear about the role of data and technology in predicting energy needs, stabilizing market pricing, and controlling supply and demand outputs. Energy companies have the advantage of optimizing existing infrastructure and assets to accelerate decarbonization and transition to a clean energy future.

Stay tuned for more from the Microsoft Energy Team, our partners, and our customers as we work together to power a sustainable future.

Additional Resources

• 3 key takeaways from CERAWeek 2022 and a cleaner future for the energy transition. 
• Learn more about themes and actions critical for energy transition. 
• Read more about how Microsoft partners with energy companies to accelerate digital transformation.
• Microsoft brings mixed reality and new immersive collaboration tools to industrial metaverse customers.
• Learn more about how Microsoft works to enable the sustainable growth of renewables in the mining industry.
• Enable your data to do more in the cloud with our energy data manager.
• To learn how to attract, train, and retain employees for your next-generation workforce, visit our transform your workforce employee retention website.
• To learn more about Microsoft for Energy and Resources, visit our future of energy industry solutions website. 

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