Driven by population and economic growth, global energy demand is expected to continue increasing in the coming years.
The proliferation of distributed energy resources (DERs) 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 resilience.
Artificial intelligence (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," 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. 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.
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.
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 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.
Conclusion
As the energy landscape continues to evolve, power and utilities companies must adapt to stay ahead of the curve. By embracing AI, cloud, and edge computing, they can unlock new levels of efficiency, resilience, and innovation. Microsoft is committed to supporting this transformation, and we look forward to connecting with our partners and customers at DISTRIBUTECH 2025 to share success stories, insights, and best practices.
Frequently Asked Questions
Q: What is the current state of the energy industry?
A: The energy industry is experiencing rapid growth, driven by population and economic growth, as well as the proliferation of distributed energy resources (DERs).
Q: How is AI changing the energy industry?
A: AI has the potential to boost resilience, improve forecasting and management, enhance security, and support predictive analytics and maintenance, among many other use cases.
Q: What are the benefits of an adaptive cloud approach in the energy industry?
A: An adaptive cloud approach helps streamline operations, provide critical power service, and unlock the power of data, further allowing companies to utilize AI to meet increasing energy demand and solve complex challenges.
Q: What is DISTRIBUTECH, and why is it important?
A: DISTRIBUTECH is an annual energy industry event that brings together leaders, innovators, and experts to share knowledge, best practices, and insights on the latest trends and technologies shaping the energy industry. Microsoft is a key participant in this event, sharing its expertise and showcasing its solutions in the field of energy and utilities.
