W H I T EP A P E RM A R C H2 0 2 6 Contents Reading guideForewordExecutive summary1 Applying the net-positive AI-energy framework in Azerbaijan2 Azerbaijan’s net-zero buildings pilot3 A right-sized AI energy efficiency use case4 Failing upwards: Turning lessons into sustainable progress4.1 From pilot to national impact5 Barriers, lessons and potential solutions5.1 Structural or technical constraints5.2 Organizational readiness gaps6 Mapping barriers to solutions and enablers7 Partnerships and stakeholder dynamics8 Value realization and scalability9 Buildings of the future9.1 Where things stand9.2 The way aheadContributorsEndnotes34567910101314141517181919202122 Disclaimer This document is published by theWorld Economic Forum as a contributionto a project, insight area or interaction.The findings, interpretations andconclusions expressed herein are a resultof a collaborative process facilitated andendorsed by the World Economic Forumbut whose results do not necessarilyrepresent the views of the World EconomicForum, nor the entirety of its Members,Partners or other stakeholders. ©2026 World Economic Forum. All rightsreserved. No part of this publication maybe reproduced or transmitted in any formor by any means, including photocopyingand recording, or by any informationstorage and retrieval system. Reading guide This report forms part of the World EconomicForum’s AI Energy Impact Initiative,1a global effortto understand how artificial intelligence (AI) cansupport a more efficient, resilient and sustainableenergy future. The initiative produces publicationscombining global analysis with regional and sector-specific deep dives. How this report fits into the series This publication is a national deep dive applying thenet-positive AI-energy framework to Azerbaijan’sbuilding sector, one of the country’s most energy-intensive sectors. It demonstrates how the globalframework can be operationalized in a nationalcontext, focusing primarily on theDeploy forImpactpillar. The latest report in the series, “From Paradox toProgress: A Net-Positive AI Energy Framework”,outlines principles to ensure that AI enablesthe energy transition rather than adding strain.It introduces three action drivers:design forefficiency, deploy for impact, andshape demandwisely, supported by ecosystem collaboration,capacity building and transparent measurement. What this report covers The report follows a pilot led by the Centre for theFourth Industrial Revolution (C4IR) Azerbaijan withsupport from the AI Energy Impact Initiative. Itassesses building energy use and digital readiness,tests an AI-enabled optimization solution, identifieskey barriers, and presents a roadmap for scaling AI-enabled building efficiency actions nationwide. Cross industry Region specific Impact on industrial ecosystems Impact on regions From Paradox toProgress: A Net-Positive AI EnergyFramework Upcoming:A Matter of Power:Optimization of AI andHyperscale Data CentreInfrastructure in MENA Piloting Buildings ofthe Future: Azerbaijan’sAI-Energy Playbook Artificial Intelligence’s Foreword Cathy Li Head, AI, Data and Metaverse;Deputy Head, Centre forAI Excellence; Member,Executive Committee,World Economic Forum Mikayil CabbarovMinister of Economy,Azerbaijan Roberto BoccaHead, Centre for Energyand Materials; Member,Executive Committee,World Economic Forum Fariz JafarovHead, Centre for theFourth Industrial RevolutionAzerbaijan The buildings sector is widely recognized as apivotal area for action in the twin green and digitaltransitions, presenting both significant environmentalchallenges and major opportunities for innovationand impact. Globally, buildings account fornearly one-third of total energy consumption andemissions.2In Azerbaijan, this challenge is particularlyacute: buildings represent 41.7% of national energyuse, well above the global average of 35%.3 Recognizing this opportunity, the Centre for theFourth Industrial Revolution Azerbaijan, with supportfrom the World Economic Forum’s AI Energy ImpactInitiative, launched a pilot in 2025. Azerbaijan’s strong energy infrastructure, supportiveinvestment climate and established internationalpartnerships provided a solid foundation for the pilot.Through close collaboration, an AI-enabled energyoptimization solution was adapted to the country’sinstitutional and infrastructure context, whileidentifying pathways to scale deployment nationally. This makes the sector a critical lever for nationaldecarbonization. Optimizing building operationscould reduce energy consumption by nearly 30%.4However, unlocking this potential requires strategicalignment between energy policy, digital innovationand long-term economic competitiveness.5 This paper offers a blueprint for adapting global AIenergy solutions to local contexts by presentingthe pilot’s key findings, the lessons learned forvarious stakeholders, and a practical roadmap foradvancing AI-enabled building efficiency nationwide. The convergence of energ