The objective of this study is to analyze and evaluate the role of artificial intelligence (AI) and cloud computing in transforming the energy industry, with a focus on their impact on data security, scalability, and system integration. The rapid integration of these technologies is reshaping the energy industry by driving digital transformation, optimizing operations, and enabling data-driven decision-making. The paper is driven with mixed-research methods categorizing reviewed materials of fifty-six (56) into five (5) distinct categories, empirical/experimental, review/literature-based, theorical/conceptual, industry/technical report and online articles/experts’ commentaries. In the study a total number of thirty-two (32) among the reviewed literatures on impact on data security has 12, scalability span ten (10) literatures, whereas integration challenges take eleven (11) materials in the study. The article highlights the challenges of safeguarding sensitive energy data in distributed environments, managing scalability demands in response to increasing data volumes, and addressing interoperability issues between legacy systems and modern cloud-based architectures. Through a comprehensive analysis, the study underscores the critical need for robust security frameworks, scalable cloud strategies, and seamless integration models to ensure resilience and sustainability in the energy sector. The findings emphasize that while AI and cloud computing present transformative opportunities, their successful adoption depends on effectively mitigating risks and aligning technological innovation with industry-specific regulatory and operational requirements.
| Published in | Science Discovery Artificial Intelligence (Volume 1, Issue 1) |
| DOI | 10.11648/j.sdai.20260101.14 |
| Page(s) | 27-40 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2026. Published by Science Publishing Group |
AI, Cloud Computing, Data Security, Scalability, Integration, Energy Industry, Cybersecurity
Component | Role in Energy Industry | Primary Concern |
|---|---|---|
Cloud | Centralized data storage and remote access. | Reliance on third-party providers. |
AI | Automated decision-making and efficiency. | Accuracy of algorithms and "black box" logic. |
Security | Safeguarding the physical grid from digital attacks. | Preventing massive power outages or data leaks. |
Scalability | Handling the "Big Data" from smart cities. | Cost-effectiveness as data grows. |
Challenge | How Hybrid Cloud + AI Fixes these Challenges |
|---|---|
Integration | Uses AI-enabled "Edge Gateways" to bridge legacy hardware and modern software. |
Security | Keeps critical "Grid Control" local/private while using public cloud for non-sensitive analytics. |
Scalability | Uses "Cloud Bursting" to handle massive data spikes during weather events or peak hours. |
Latency | Edge AI makes split-second decisions locally; Cloud AI handles long-term strategy. |
AWS | Amazon Web Services |
CAGR | Compound Annual Growth Rate |
ETSI | European Telecommunication Standards Institute |
CENELEC | European Committee for Electrotechnical Standardization |
SDO | Electricity System Operator |
CEN | European Committee for Standardization |
iPass | Integration Platform as a Service |
ESO | Electricity System Operator |
ECM | Energy Consumption Manager |
ISO | International Organization for Standardization |
NIST | National Institute of Standards and Technology |
HMI | Human Machine Interface |
PLC | Programming Logic Controller |
SCADA | Supervisory Control and Data Acquisition |
CC | Cloud Computing |
AI | Artificial Intelligence |
CPS | Cyber Physical Systems |
| [1] | Alameldin, M. (2022). Smart Predictive Maintenance Framework SPMF for Gas and Oil Industry. In International Petroleum Technology Conference. OnePetro. |
| [2] | Aberdeen report (2016), Maintaining Virtual System Uptime in Today’s Transforming IT Infrastructure. |
| [3] | Compliance Aspekte (2021), Energy Sector Compliance: Regulatory Outlook, Infopulse Standard Compliance Manager, compliance-aspekte.de/en/articles/energy-sector-compliance-regulatory-outlook |
| [4] | Clemens, T., & Viechtbauer-Gruber, M. (2020). Impact of digitalization on the way of working and skills development in hydrocarbon production forecasting and project decision analysis. SPE Reservoir Evaluation & Engineering, 23(04), 1358-1372. |
| [5] |
Cisco (2016), Utility and Energy Security: Responding to Evolving Threats, White Paper,
www.cisco.com/c/dam/en_us/solutions/industries/docs/energy/security-benchmark-study-utilities.pdf |
| [6] |
Damian Szewezyk (2024), Why Interoperability Matters in the Cloud Computing Era, Cloud Computing,
www.devopsbay.com/blog/why-interoperability-matters-in-the-cloud-computing-era. |
| [7] |
Energy Exemplar (2024), Cloud Technologies Critical to Energy Utilities and Organizations, Team Energy Exemplar
www.energyexemplar.com/blog/cloud-technologies-critical-to-energy-utilities-and-organizations |
| [8] |
AVEVA Group Limited (2020-2025), Industrial AI-Based Solutions,
www.aveva.com/en/solutions/digital-transformation/artificial-intelligence/ |
| [9] | Jin, D, Ocone, R, Jiao, K & Xuan, J 2020, 'Energy and AI', Energy and AI, vol. 1, 100002. |
| [10] | Florian Andreas Kolb (2024), Mitigating AI Security Vulnerability in the Electric Power Sector. |
| [11] | Jakob Luttropp (2024), Modernized Legacy Systems in the Energy Sector, frends.com/ipaas/blog/legacy-modernization/energy-sector-companies |
| [12] | Hirenkumar Kamleshbhai Mistry, Chirag Mavani, Amit Goswami and Ripalkumar Patel (2024), The Impact of Cloud Computing and Ai on Industry Dynamics and Competition, Educational Administration: Theory and Practice, 30(7), 797-804 |
| [13] | GridX, (2021), Dynamic Load Management, |
| [14] | James Reyers-Picknell (2020), Industrial IoT for Predictive Maintenance and Big Data, Mobius Institute. |
| [15] | SentinelOne (2024), What is AI Data Security? Examples & Best Practices,Manthan Bhavsar (2024), The Role of Artificial Intelligence in Data Security, |
| [16] | Anthony Lawrence Paul (2024), The Role of Artificial Intelligence in Enhancing Data Security ResearchGate. |
| [17] | Precedence Research (2024), Cloud Computing in Energy Market Size, Share, and Trends 2024 to 2034, |
| [18] |
Gilad Maayan (2020), Centralized Cloud Security: An Asset or Liability, IEEE Computer Society,
www.computer.org/publications/tech-news/trends/centralized-cloud-security-an-asset-or-a-liability |
| [19] | Jin Guang Yu (2018), IOT, And Big Data, Cloud Computing, Artificial Intelligence/Machine Learning, Bim and Digital Twins in Building Automation Management Applications. |
| [20] | Claude B. (OMG), Erin B. and Erich C. (2021), An Industrial Internet Consortium White Paper, Global Industry Standards for Industrial IoT, a program of Object Management Group, Inc. (“OMG”). |
| [21] | Harold Finch (2024), What is Interoperability in Cloud Computing, Medium, medium.com/@haroldfinch01/what-is-interoperability-in-cloud-computing-9f90dfad6aa0 |
| [22] | David Titus (2021), Artificial Intelligence in Numbers Q2 2021,” CB Insights, July 2021 |
| [23] | Jonathan et al., (2025), Takepoint Research, Industrial cyber, risk management handbook 2025. |
| [24] | Hewlett Package Enterprise Development LP. HPE Glossary, |
| [25] | Haining Zheng, Antonio R. Paiva, Chris S. Gurciullo, (2020). Advancing from Predictive Maintenance to Intelligent Maintenance with AI and IIoT. In AIoT workshop at KDD 2020: The 26 ACM SIGKDD International Conference on Knowledge, Aug 22-27, 2020, San Diego, CA, USA 6 pages. |
| [26] | Jonathan Gordon (2025), State of the Industrial Cybersecurity Market in 2025, Industrial Cybersecurity Buyer’s Guide 2025, industrial cyber. |
| [27] | Kingsley U, Kehinde O. Olatunji, Eyitayo A., Tien-Chien len, Daniel M. Madyira, (2024), Optimizing Renewable Energy Systems Through Artificial Intelligence: Review and Future Prospects, Energy & Environment, Sage Journal. |
| [28] | Kosta Mitrofansky (2024), Scalability in Cloud Computing for Skyrocket Performance, Cloud Infrastructure and Computing, Intellisoft, intellisoft.io/cloud-computing-scalability-what-is-it-and-why-its-important/ |
| [29] |
Adam P., Alexandra S., Anna G., Daniela A., Dylan H., Emma F., Freek K., Iris I., Justin F, Justin T, Maria G, Min K, Nahisha N, Nathaniel J, Nicole W, Ryan T, Safiy S, Sam L, Steven S, Vivek R, Weronika W and Zoe T, Evolving Threat and Emerging Tactics in Cybersecurity, Annual Threat Report 2024,
www.darktrace.com/blog/darktrace-releases-annual-2024-threat-insights |
| [30] | Iryna Kurkina (2023), Cloud Computing and AI, Academy SMART, academysmart.com/author/iryna_kurkina/?page=2 |
| [31] | Jacobs, T. (2018). Shell Picks a Digital Platform to Build Its AI Future Upon. Journal of Petroleum Technology, 70(12), 43-44. |
| [32] | L. X. J. Z. Y, and L. L. Wang, (2018) “Integrating AI with Load Balancing in Cloud Computing Environment,” International Journal of Cloud Computing, vol. 7, no. 2, pp. 112-127, 2018. |
| [33] | Umesh Pande (2024), The Role of Cloud Computing in Scalable Energy Management Solutions. startelelogic.com/blog/the-role-of-cloud-computing-in-scalable-energy-management-solutions/ |
| [34] | Peasoup (2025), The Rise of Cloud Computing and Its Environmental Impact, peasoup.cloud/iaas/cloud-computing-growth-and-energy-consumption// |
| [35] | Jiménez S., (2025) Interoperability Framework in Energy Data Spaces, International Data Spaces Association, Dortmund 2025. |
| [36] | Monjur A. & Mohammad A. H (2014), “Cloud Computing and Security Issues in The Cloud", International Journal of Network Security & Its Applications, Vol. 6, No. 1, Page No. 25-36. |
| [37] |
Pauline Hawkes-Bunyan (2021), AI and The Investment Management Industry, Investment Association in collaboration with EY, Clifford chance.
www.economist.com/leaders/2017/05/06/the-worlds-most-valuable-resource-is-no-longer-oil-but-data |
| [38] | Hussein A. A. (2021), Data Migration Need, Strategy, Challenges, Methodology, Categories, Risks, Uses with Cloud Computing, and Improvements in Its Using with Cloud Using Suggested Proposed Model (DMig 1) Open Access, Journal of Information Security (JIS), No. 1 2021(01): 79-103, ResearchGate. |
| [39] | Morris, E., Stamp, K., Halford, A.& Gaura, E. (2022), The practice of AI and ethics in energy transition futures. Energy REV, University of Strathclyde Publishing: Glasgow, UK. |
| [40] | Manvendra Kunwar (2024), AI in Cloud Computing: Enhancing Scalability, Efficiency, and Security for Modern Enterprise, |
| [41] |
Global Market Insights (2024) Cloud Computing in Oil and Gas Market Size - By Service, By Deployment Mode, By Operation, By Application, By End Use, Growth Forecast, 2025 – 2034,
www.gminsights.com/industry-analysis/cloud-computing-in-oil-and-gas-market |
| [42] | Olivia Barber (2024), How artificial Intelligence will change decision making, In Data Lab, indatalabs.com/blog/artificial-intelligence-decision-making |
| [43] | Oleksandr B., (2025), Exploring the Potential of AI for Energy Management, Big Data, AI and ML, Techstack, tech-stack.com/blog/ai-in-energy-sector/ |
| [44] | Makysym Kharuk (2023), How Cloud Computing is transforming the Renewable Energy Industry, ratedpower.com/blog/cloud-computing-renewable/ |
| [45] | Nick E., Ben R., & Xuesong Z., (2019), Cloud computing, Artificial Intelligence (AI) and Connectivity - unleashing innovation, |
| [46] | Priyanka & Abdul Haleem Quraishi (2024), A Study on Cloud Energy Issues in Cloud Computing, International Journal of Research Publication and Reviews (IJRPR), Vol. 5, No. 5, PP 12103-12106. |
| [47] | Ehsanullah Baig (2025), Customizing Cloud Services for Business Needs, ComputeSphere, computesphere.com/blog/customizing-cloud-computing-services-for-unique-business-requirements- |
| [48] | Nzubechukwu C. O., Adebayo O. A, Emmanuel C. A, Peter E. O. & Abiodun A. (2023), Advancements in predictive maintenance in the oil and gas industry: A review of AI and data science applications, World Journal of Advanced Research and Reviews (WJARAI), 20(03), 167–181. |
| [49] | Klaus Foitzick (2024), Automated decision-making by AI, |
| [50] | Sayed Shan Danish (2023), AI in Energy: Overcoming Unforeseen Obstacles, ResearchGate’s, 406-425, |
| [51] | Tom Cash (2024), AI in the Energy Sector-Uses and Challenges of AI in Energy, Energy Management, EM Magazine, |
| [52] |
Andreas Klien and Simon Rommer (2025), Disaster Recovery got Power Grid, Protect your Grid by OMICROM.
www.omicroncybersecurity.com/en/resources/past-future-disaster-recovery-for-the-power-grid |
| [53] | IEPL Corporate Communication, Indorama-Nigeria, Impact In-House Magazine, 2019, |
| [54] |
Bandana Guar, (2024), What is Risk Mitigation in cloud Computing, Digital Regenesys,
www.digitalregenesys.com/blog/what-is-risk-mitigation-in-cloud-computing |
| [55] | Paloalto Network, Coberpedia, AI Risk Management Frameworks: Everything You Need to Know, www.paloaltonetworks.in/cyberpedia/artificial-intelligence-cybersecurity |
| [56] |
Dominik Samociouk (2025), Cybersecurity automation explained: challenges, costs and benefits,
https://www.future-processing.com/blog/cybersecurity-automation-guide/ |
APA Style
Frederick, B. A. (2026). AI and Cloud Computing in the Energy Industry: Impact on Data Security, Scalability, and Integration Challenges. Science Discovery Artificial Intelligence, 1(1), 27-40. https://doi.org/10.11648/j.sdai.20260101.14
ACS Style
Frederick, B. A. AI and Cloud Computing in the Energy Industry: Impact on Data Security, Scalability, and Integration Challenges. Sci. Discov. Artif. Intell. 2026, 1(1), 27-40. doi: 10.11648/j.sdai.20260101.14
@article{10.11648/j.sdai.20260101.14,
author = {Boye Aziboledia Frederick},
title = {AI and Cloud Computing in the Energy Industry: Impact on Data Security, Scalability, and Integration Challenges},
journal = {Science Discovery Artificial Intelligence},
volume = {1},
number = {1},
pages = {27-40},
doi = {10.11648/j.sdai.20260101.14},
url = {https://doi.org/10.11648/j.sdai.20260101.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sdai.20260101.14},
abstract = {The objective of this study is to analyze and evaluate the role of artificial intelligence (AI) and cloud computing in transforming the energy industry, with a focus on their impact on data security, scalability, and system integration. The rapid integration of these technologies is reshaping the energy industry by driving digital transformation, optimizing operations, and enabling data-driven decision-making. The paper is driven with mixed-research methods categorizing reviewed materials of fifty-six (56) into five (5) distinct categories, empirical/experimental, review/literature-based, theorical/conceptual, industry/technical report and online articles/experts’ commentaries. In the study a total number of thirty-two (32) among the reviewed literatures on impact on data security has 12, scalability span ten (10) literatures, whereas integration challenges take eleven (11) materials in the study. The article highlights the challenges of safeguarding sensitive energy data in distributed environments, managing scalability demands in response to increasing data volumes, and addressing interoperability issues between legacy systems and modern cloud-based architectures. Through a comprehensive analysis, the study underscores the critical need for robust security frameworks, scalable cloud strategies, and seamless integration models to ensure resilience and sustainability in the energy sector. The findings emphasize that while AI and cloud computing present transformative opportunities, their successful adoption depends on effectively mitigating risks and aligning technological innovation with industry-specific regulatory and operational requirements.},
year = {2026}
}
TY - JOUR T1 - AI and Cloud Computing in the Energy Industry: Impact on Data Security, Scalability, and Integration Challenges AU - Boye Aziboledia Frederick Y1 - 2026/02/24 PY - 2026 N1 - https://doi.org/10.11648/j.sdai.20260101.14 DO - 10.11648/j.sdai.20260101.14 T2 - Science Discovery Artificial Intelligence JF - Science Discovery Artificial Intelligence JO - Science Discovery Artificial Intelligence SP - 27 EP - 40 PB - Science Publishing Group UR - https://doi.org/10.11648/j.sdai.20260101.14 AB - The objective of this study is to analyze and evaluate the role of artificial intelligence (AI) and cloud computing in transforming the energy industry, with a focus on their impact on data security, scalability, and system integration. The rapid integration of these technologies is reshaping the energy industry by driving digital transformation, optimizing operations, and enabling data-driven decision-making. The paper is driven with mixed-research methods categorizing reviewed materials of fifty-six (56) into five (5) distinct categories, empirical/experimental, review/literature-based, theorical/conceptual, industry/technical report and online articles/experts’ commentaries. In the study a total number of thirty-two (32) among the reviewed literatures on impact on data security has 12, scalability span ten (10) literatures, whereas integration challenges take eleven (11) materials in the study. The article highlights the challenges of safeguarding sensitive energy data in distributed environments, managing scalability demands in response to increasing data volumes, and addressing interoperability issues between legacy systems and modern cloud-based architectures. Through a comprehensive analysis, the study underscores the critical need for robust security frameworks, scalable cloud strategies, and seamless integration models to ensure resilience and sustainability in the energy sector. The findings emphasize that while AI and cloud computing present transformative opportunities, their successful adoption depends on effectively mitigating risks and aligning technological innovation with industry-specific regulatory and operational requirements. VL - 1 IS - 1 ER -