1 Cross-sector collaboration remains essential Energy and digital technology have historically operated in silos, and respondents from both groups feel that partnership is crucial now. Although some cross-sector forums and consortiums have formed in the past year, many described current collaboration as early-stage. There is still no standard playbook for utilities and cloud providers to co-develop AI solutions, or for regulators and AI firms to engage more proactively to help shape and support investments. One policy leader noted the dramatic shift in tone from exploration to execution and stressed that 2025 would be a make-or-break year for aligning AI ambitions with infra- structure reality. They highlighted many CEOs now see grid capacity and workforce readiness as integral to their digital strategy. This is a positive development indicating the right cross-sector conversations are happening. The clear implication is that awareness must now translate into concrete action. ADNOC, together with its co-investors and technology partners, is advancing a comprehensive program to reduce methane emissions and achieve zero routine flaring across its operations by 2030. ADNOCs efforts are part of a broader coalition of energy companies and technology partners - including G42 and Microsoft - who are investing in digital innovation to accelerate emissions reduction. These collaborations focus on deploying advanced analytics, IoT sensors, and AI-driven platforms to optimize methane management and flare reduction, as well as to support the scaling of carbon capture, utilization and storage (CCUS). Cross-sector collaboration for scalable energy transformation More than 125 leaders across energy, technology, and academia are collaborating through OpenMinds to accelerate progress on the Dual Challenge of delivering more energy with less emissions, fast. United by a non-partisan mission, this network brings together current and future global leaders to address affordable energy access while rapidly reducing emissions. Microsoft is among OpenMinds contributors, working alongside peers to advance practical solutions and key initiatives that remove bottlenecks across the energy system. The group leverages collective expertise to communicate targeted actions, align existing leaders, develop future leaders, design and act on solution pathways, and lead impact projects. OpenMinds current flagship impact project, Grid Vision, aims to strengthen and expand the grid to deliver low-cost, abundant, reliable power. OpenMinds is driving impact projects on other key Dual Challenge solutions including methane abatement, CCUS, nuclear, and more. 11 Transforming grid reliability through AI collaboration Microsofts collaboration with EPRI exemplifies how cross-sector collaboration is accelerating the energy transition through practical AI innovation. The Open Power AI Consortium brings together utilities, technology leaders, and researchers to co-develop scalable AI solutions that address the industrys most pressing challenges. An early result is the joint development of an AI-powered transformer health monitoring model, which has doubled the accuracy in identifying high-risk transformers while achieving a 20% reduction in false positives compared to traditional rule-based systems. These solutions will empower utilities to proactively manage aging grid assets, prevent Co-innovating to drive efficiency and reduce emissions Initiatives such as Microsofts investment in Twelve and commercial partnership with Alaska Airlines using E-Jet Fuel (SAF) produced from captured CO2underscore how innovation and cross-industry collaboration are central to accelerating climate progress 8 . Additional investments in low-carbon cement, including Fortera 9 , and agreements with near-zero emission steel producer Stegra 10 , further demonstrate how digital infrastructure investments can signal demand for sustainable materials and catalyze low-carbon innovation across sectors. 8 Twelve and Alaska Airlines to collaborate with Microsoft to advance sustainable aviation fuel derived from recaptured CO2 and renewable energy, Decarbonization Technology, July 2022, https://www.esgtoday.com/alaska-airlines-twelve- microsoft-collaborate-to-use-sustainable-aviation-fuel-produced-from-captured-co2/ 9 Microsoft invests in Fortera to scale low-carbon cement production, Global Construction Review, Feb 2025, https://www.globalconstructionreview.com/microsoft-invests-in-fortera-to-scale-low-carbon-cement-production/ 10 Microsoft Partners with Stegra to Accelerate Market for Near-Zero Emission Steel, ESG News, Sept 2025, https://stegra.com/news-and-stories/stegra-announces-agreement-with-microsoft 11 OpenMinds, https://openminds203x.org/ 12 EPRI Launches Consortium to Drive Development of AI Applications in Power Sector, March 2025, https://www.epri.com/about/media-resources/press-release/yglqo5dymdh2nonjvdgqmmpgplyyj826 AI Transformation is accelerating scientific discovery, expanding access to knowledge, and empowering people and organizations in ways we are only beginning to imagine. With that promise comes responsibility. Microsoft is focused on meeting AIs compute demands sustainably by optimizing every layer of our infrastructurefrom silicon to softwareto reduce energy use, minimize water consumption, and improve efficiency. That means optimizing every watt, procuring more clean energy, and using AI itself to drive smarter, more sustainable operations. Judson Althoff CEO, Microsoft Commercial outages, and improve reliability showcasing how collaborative, AI-driven approaches are moving the industry from pilot projects to real-world impact. 12 Key Shifts from 2024 to 2025 Momentum is building behind cross-sector working groups and initiatives such as ENERGYai with ADNOC, AIQ, G42 and Microsoft. In addition, EPRIs Open Power AI Consortium has engaged over 300 key players in electric utility, technologies, hyperscalers, and national labs. The consortium is actively sharing real-world solutions and proven practices with this global community. Watch For in 2026 Formation of national or regional EnergyAI councils with utilities, tech firms, regulators, and financiers at the same table. Scaling pilots into multi- stakeholder, multi-year programs with shared platforms and protocols. 23 Powering Possible 2025 22