Driven by population and economic growth, global energy demand is expected to continue increasing in the coming years. With elevated awareness around fossil fuels and climate impact, investors are dedicating financial resources toward more sustainable methods of generating and consuming energy. For power and utility providers, that means a growing interest in renewable energy, which saw a 30% increase last year, compared to just 13% in the same period the year prior1.
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
Sources:
1 2025 Power and Utilities Industry Outlook, Deloitte, December 2024.
2 Public Utilities Fortnightly®, Special Issue, State and Future of Power, Guidehouse, June 2024.
With nearly two decades at the forefront of the Power and Utilities (P&U) industry, Bilal Khursheed holds the role of Worldwide Power & Utilities Leader at Microsoft, leading its go-to-market strategy for P&U. Renowned for merging innovation with tangible results, Bilal drives Microsoft’s global P&U vision and dedicates his expertise championing sustainability and mentoring the next generation of industry leaders.