The inconvenient truth: AI's insatiable appetite for energy threatens climate progress

The fast rise of artificial intelligence (AI) investment is a double-edged sword. While it promises unprecedented advancements, the environmental cost of AI's insatiable hunger for energy is reaching a tipping point. Investment in data centers, the lifeblood of AI operations, reached a staggering $350 billion in 2023 and is projected to balloon to $1 trillion annually by 2027. OpenAI CEO Sam Altman has even called for an immediate $5 trillion investment, representing 5% of global GDP, to fuel further AI development.

Data centers: Energy devourers

Large data centers, the backbone of AI operations, allocate roughly 45% of their energy consumption for cooling purposes. The huge energy demand is increasingly straining power grids, particularly in the United States and raising concerns about the environmental impact of the rising computing power needs. The state of Virginia in the US for instance, has switched part of its energy infrastructure to coal generated energy as it cannot keep up with energy demand from the growing data center business deployed in this state. This has abysmal repercussions on the decarbonization plans set to reach Net zero in 2040 in the US.

Google's decarbonization is not happening

Once a champion of environmental responsibility and clean tech, Google now admits a 48% surge in carbon emissions over five years. Its energy-related emissions alone soared by 37% in 2023, primarily driven by its investment in data centers. This contradicts its pledge to achieve net-zero emissions by 2030, raising concerns about the ability of corporate giants to sustain their green-growth efforts while pushing their corporate priorities. 

An electricity catastrophe coming?

AI's relentless growth is set to increase electricity demand by up to 20% by 2030. In the face of this skyrocketing demand, and with the limited availability of renewable energy sources, there are concerns that regions, particularly in lower income countries, will be forced to revert to carbon intense energy sources like coal. This alarming trend is already evident in the state of Virginia, a hub for data centers, where coal is making a comeback to meet the growing energy needs.

The renewables challenge

While renewable energy offers a scalable alternative, challenges remain. To showcase the clean tech momentum, clean tech investment in 2023 was approximately 1.9 $ trillion compared to 1.1 $ trillion in conventional energy (IAE 2023). Having said that, delays in renewable energy infrastructure development and the sheer scale of energy delivery required for data centers raise questions about the short-term viability of cleaner energy sources. 

Tech giants acknowledge the problem

Microsoft joins Google in acknowledging the problem, reporting a 30% increase in emissions since 2020, largely attributed to data center expansion. This admission underscores the undeniable link between unchecked AI growth and environmental degradation. Other activist corporate giants such as Apple, Amazon and Coca Cola joined the First Mover Coalition of the Davos World Economic Forum (WEF) and invested in green coal, green hydrogen, and green cement, among others, to send a market signal that top corporations are committed to the green growth transition.

Conclusion: A call to urgent and responsible action

The conflict between technological progress and environmental preservation as outlined in Paris in 2015, and more recently in Dubai COP28 in 2023, demands immediate attention. Embracing renewable energy, enforcing stricter energy efficiency standards, and holding corporations accountable are paramount and can be cost effective. We must not be blinded by the attractiveness of AI at the expense of our planet's future.

Governments, corporations, and individuals alike must act decisively to steer AI towards a sustainable path. This includes investing in renewable energy infrastructure, developing more energy-efficient AI models, create more efficient chips designs, and demanding transparency from tech companies about their environmental footprint and commitments. The time for complacency is over. We can either harness AI responsibly or bequeath a ravaged environment to future generations. The choice is ours.