Microsoft used the DTECH 2026 energy industry conference to urge electricity utilities to accelerate the deployment of artificial intelligence beyond isolated trials and into core operational systems.
The company argued that the electricity grid is becoming a real-time system at every layer, with load growth, electrification and the spread of distributed energy assets compressing planning timelines and increasing operational complexity.
A central theme was the need to unify information technology (IT) and operational technology (OT) data, the two historically separate streams covering business systems and physical infrastructure, respectively.
Microsoft said utilities generate large volumes of data across assets, outages, telemetry, imagery, work management and customer systems, but that inconsistent definitions, varying data speeds and uneven governance slow analysis and prevent AI from scaling beyond individual use cases.
The company announced a series of partner integrations at the conference, including an expanded collaboration with Dragos, an industrial cybersecurity firm, combining Dragos's OT threat intelligence with Microsoft's cloud and security platforms to protect cyber-physical operations.
Other announcements included GE Vernova's GridOS Data Fabric and DDLR products moving onto Microsoft Azure; Hitachi Energy combining its Ellipse asset management software with Microsoft Dynamics 365, Microsoft Fabric and Copilot; Itron connecting its grid-edge data platform to Microsoft 365 Copilot; and Schneider Electric integrating Microsoft AI and cloud tools into its One Digital Grid Platform.
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Microsoft said utilities should prioritise building trusted data foundations that span IT and OT environments, embedding AI agents directly into operational workflows, and adopting secure architectures from the outset.
The company said it would continue working with utilities and technology partners to advance these priorities, without specifying timelines or investment commitments.
The Recap
- Microsoft urged utilities to move AI from pilots to production.
- Partnerships announced with Dragos, GE Vernova, Hitachi, Itron.
- Focus on trusted data, agentic workflows, and secure architectures.
