AI, Energy Consumption Debate over Fossil Fuels or Renewable Energy
Growing AI consumption of energy demands from expanding data centers are raising climate change concerns, as many facilities rely on fossil fuels for power, undermining global decarbonization efforts despite the push for sustainable technology solutions.
In the US, home to a third of the world’s data centers, utilities are turning to natural gas to meet the surging electricity demand and investing in a new gas infrastructure.
Dominion Energy, serving Northern Virginia – the largest data center hub – is building a 1,000-megawatt gas plant and adjusting its energy consumption of AI strategy by reducing its reliance on renewables.
AI Training Energy Consumption and Europe’s Reliance
Big companies like Amazon and Meta began with with renewable energy for their operations, often sourcing clean power from the grid, which can displace renewables for other uses. Long-term and large-scale solutions, like nuclear power or dedicated renewable energy projects for data centers remain uncertain and years away from mainstream.
Europe’s Reliance on Coal and Gas for Data Centers
In Europe, countries like Poland and Ireland energy consumption by AI is increasingly dependent on fossil fuels to power data centers due to slow progress in renewable energy development.
Poland, with a coal-heavy energy mix, and Ireland, where data centers account for over 20% of electricity consumption, are facing energy shortages and extending the life of coal plants to meet demand.
Microsoft’s plan to expand data centers near Germany’s Hambach coal mine have highlighted coal’s role in the country’s AI consumption of energy. Despite renewable energy commitments, its coal-adjacent infrastructure raises questions about fossil fuels in digital economies.
In Malaysia, data companies rely on a coal- and gas-dominated grid to meet AI consumption of energy needs, as renewable energy projects struggle to scale, delaying the transition to cleaner energy sources.
A Morgan Stanley report estimated the global data-center industry could emit up to 2.5 billion metric tons of CO2 emissions by decade’s end, equal to Russia’s annual emissions. This wave in emissions is a significant setback for global climate goals, highlighting the urgent need for investments of energy consumption and AI in clean energy infrastructure.
Aligning Digitalization with Climate Goals
World leaders reunited together at the UN Climate Summit in Baku, discussed the need for digitalization to be aligned with global climate goals.
The demand of data centers for energy consumption and AI technologies is growing fast, but experts warn that without significant investments in renewable energy, the shift to a low-carbon future may be delayed.
Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Tech sections to stay informed and up-to-date with our daily articles.