Masdar’s portfolio expanded 62% to some 51 GW last year, more than halfway toward its 2030 target of 100 GW in renewables capacity, according to the company’s annual sustainability report. Capacity for operational and under-construction projects nearly doubled to 32.6 GW, while operational projects generated 29.2k GWh of clean electricity.

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Where the energy is going: Masdar is shifting the energy from its USD 6 bn mega solar and battery project from green hydrogen production to AI infrastructure, Bloomberg quotes CEO Mohamed Jameel Al Ramahi as saying. The decision comes as global demand for green hydrogen lagged far behind expectations, leaving projects without buyers, while electricity needs from power-hungry data centers have soared.

In the UAE alone, Abu Dhabi has a plan to develop 5 GW of gas-fired power plant projects to support its AI strategy. Other projects under the strategy include the 1 GW open-cycle gas turbine in Al Dhafra, as major AI projects like Du’s AED 2 bn hyperscale data center and Stargate UAE, the first international deployment of the US’ USD 500 bn Stargate AI infrastructure platform and part of the 5 GW US-UAE data center cluster in Abu Dhabi, begin to take shape.

It’s been slow going for green hydrogen: High production costs have stifled demand, forcing companies around the world to scale back or cancel projects and raising fresh doubts over the industry’s long-term viability.

Still — Masdar is not completely out: “Today, green hydrogen is under pressure and the market is shrinking. A lot of people who went into this venture are out. We are not,” Al Ramahi said. “But we also need to respect global dynamics. Today, if I want to produce green ammonia, who’s going to be the offtaker?”

The firm has no plans to go public as it remains well-funded through its shareholders Taqa, Mubadala, and Adnoc, Bloomberg reported separately, citing statements from Al Ramahi. The company is targeting USD 50 bn in new investments to reach its 2030 goal, with USD 15 bn expected to come from its own money.

However, Masdar could list quickly if shareholders decide to move ahead. “If the shareholders want it, we can go public tomorrow,” Al Ramahi said, citing the company’s record of bond issuances and established credit ratings.

Speaking of: S&P Global Ratings assigned Masdar a long-term issuer credit rating of AA- with a stable outlook, citing its “extremely high likelihood” of state support, according to a statement and separate press release. The agency noted that Masdar has received over AED 20 bn in equity from the government to finance acquisitions, helping offset execution and leverage risks tied to its rapid expansion. Masdar’s credit profile is also expected to stay very closely-linked to Abu Dhabi’s sovereign rating and the firm also benefits from its strong market position. The ratings agency did note Masdar’s high leverage position as a downside risk to its credit profile.

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