Masdar and Octopus Energy have signed two Memoranda of Understanding (MoU) aimed at unlocking power capacity for data centers in the UK and scaling clean energy projects across Africa.

Under the terms of the non-binding partnership, UAE state-owned Masdar and UK energy and tech firm Octopus will seek to identify underutilized capacity within local distribution networks and develop on-site energy systems to support faster deployment of data centers. The companies have said that the agreement is in response to the significant delays in securing grid connections within the UK.

The approach aims to combine on-site solar generation, battery storage, and flexible grid connections to enable data center providers to access power more quickly, without relying on grid or transmission infrastructure upgrades. Octopus will deploy its Kraken-powered optimization platform to manage the on-site assets and grid usage, in an effort to ensure reliable power for data center operations while reducing costs by shifting demand to lower-priced periods.

“Masdar and Octopus Energy share a commitment to overcoming challenges, expanding access to renewable energy, and powering progress across the globe,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “Through these agreements, we continue to reimagine the potential of renewables in the AI era, while also bringing much-needed clean energy to communities and businesses across Africa. We look forward to extending our partnership with Octopus Energy and transforming the energy market in the UK and in Africa.”

The second MoU signed by the companies will support the deployment of distributed energy systems for commercial and industrial users in Africa. The deployments will begin in South Africa, with a view to expanding across the continent. As part of the agreement, Masdar said it will align the collaboration with its Power Africa Initiative, which aims to mobilize $450 million for clean energy projects, including grids and distributed infrastructure.

Commenting on the deal, Greg Jackson, founder and CEO of Octopus Energy, said: “This is a huge partnership and exactly what we need to move faster. Masdar is world-class in its vision and capabilities, and like us they’re focused on finding ways for renewables to deliver real value to countries and citizens.

“This is about delivering projects that make energy cheaper, cleaner, and unlock real opportunities for businesses and industry.”

The deals build on an existing relationship between the two firms, with Masdar licensing Octopus’ Kraken platform in 2023 to manage its UK battery storage portfolio.

Octopus Energy is a global energy company and technology provider. Founded in the UK, it operates as a renewable energy supplier and develops advanced energy management software through its Kraken platform, which optimizes electricity networks, batteries, and demand for utilities and large energy users worldwide.

Masdar is a state-owned renewable energy company based in Abu Dhabi, United Arab Emirates. According to the company, it has approximately 65GW of operational renewable capacity, with plans to reach 100GW by 2030.

It has signed several deals in the data center space over the past few years. In 2024, the company, alongside the Abu Dhabi National Oil Company, signed a strategic collaboration agreement with Microsoft to explore low-carbon options to power Microsoft’s global data center portfolio.