The Abu Dhabi National Energy Company (Taqa) and Emirates Water and Electricity Company (Ewec) reached financial close on the Al Dhafra gas power plant, according to a disclosure (pdf). Taqa will fully own and operate the AED 3.6 bn, 1 GW plant under a 24-year power purchase agreement signed with Ewec earlier this year, with construction already underway.

About 85% of the project is debt-funded through a consortium of local and international banks including Standard Chartered, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Agricultural Bank of China, Ajman Bank, Boubyan Bank, Doha Bank, First Abu Dhabi Bank, HSBC, ICBC, KfW, National Bank of Kuwait, Rakbank, and Woori Bank.

The bigger picture: The project is part of Taqa, Ewec, and Masdar’s AED 36 bn push in Abu Dhabi’s energy infrastructure. This includes deploying Masdar’s 5.2 GW solar and 19 GWh battery storage project, with the majority of output earmarked for AI data centers, supporting the UAE 2031 National Strategy for AI.

The regional edge: The region’s rising cluster of energy projects — like Al Dhafra project — offer an advantage in the AI race, as lower-than-average energy tariffs (USD 0.05-0.06 / kWh vs USD 0.09-0.15 / kWh in the US) are an edge in an industry where computation and cooling energy are essential.

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