AI’s dual promise for Ireland

When it comes to harnessing the power of artificial intelligence (AI) and committing to the drive for sustainable energy solutions, it’s time to allow those are not mutually exclusive goals. In fact, AI can unlock huge leaps in energy efficiency, renewable production and all aspects of net zero work.

AI is set to be among a key theme as the world’s decision makers attempt to balance the potential impact of energy consumption with the technology’s potential to transform clean energy.

To understand how artificial intelligence is unlocking positive climate outcomes and accelerating the energy transition in Ireland and around the world, KPMG carried out extensive research to develop AI’s dual promise.

This global report includes multiple real-world examples from leading businesses worldwide, along with comprehensive results from our survey of more than 1,202 executives (including 109 in Ireland) from tech companies, data centre developers, hyperscalers, utilities, infrastructure developers, renewable energy companies and power generators.

Michael Hayes

Partner, Global Head of Renewables

KPMG in Ireland

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Business leaders say AI is the climate challenge solution, not the problem

Forecasts vary significantly, but some campaigners have called for a moratorium on new AI data centre builds, warning they could significantly increase global emissions by 2030, slowing or even reversing current progress on climate change.

The challenge for political and business leaders is understanding AI’s increasing need for energy resources while balancing this with the huge potential the technology has to rapidly speed up progress on clean energy and decarbonization.

Ninety-seven percent of Irish and global executives said they believe AI is a net positive for accelerating progress towards net-zero goals. Meanwhile, 96 percent believe clean energy can meet AI’s future demands and 87 percent of those questioned said AI is central to them achieving their net-zero goals

The energy reality behind the AI boom

AI offers an extraordinary dual promise: enabling positive climate outcomes while powering the energy transition. From optimising complex operations and enhancing resource management to accelerating scientific research and reimagining business models, AI is fundamentally reshaping how we approach energy.

James Delahunt

Partner, Corporate Finance, Head of Energy & Natural Resources

It’s clear Ireland leads the way on many fronts. AI’s dual promise, KPMG’s new research, shows sustainability and carbon reduction are top priorities for 54 percent of Irish respondents, compared to 46 percent globally.

Meanwhile, 84 percent expect renewables to supply more than half of their energy needs within three years, compared to 66 percent globally. Over 6 in 10 (63 percent) are much more likely to be highly confident the energy sector can meet the growing demand for clean or renewable energy from AI, data centres and hyperscalers over the next three years, compared to 50 percent globally.

How AI can help deliver positive climate outcomes

As it can analyse vast quantities of data, AI can help cut emissions to enable more accurate and efficient emissions reporting. It can also be used to optimise energy grids, predict renewable energy output and improve its deployment, enhance carbon capture and improve energy efficiency.

When it comes to understanding the potential value of AI in delivering positive climate outcomes, Irish respondents are well aligned with global counterparts in some ways.

AI’s capacity to optimise grid integration, predict renewable output and manage demand dynamically is making clean energy sources more reliable and economically attractive than ever before.

Michael Hayes

Partner, Global Head of Renewables

Balancing growth and speed

While AI could drive the clean energy revolution needed to power its own expansion, that can only happen if the world builds fast enough, our global report makes clear. Irish respondents are notably less likely than those around the world to take a balanced approach when it comes to combining growth and speed to market with the clean energy imperative.

One in five say clean energy is non-negotiable, rather more than about one in eight globally. On the flip side, 14 percent say speed to market takes priority over clean energy, twice as high as the global figure.

The critical 24-month project window

All stakeholders have multifaceted roles to play and, for each of them, it’s crucial to be fully aware of the risks and challenges set out in detail in our global report, whether those are limited investment, technical or policy bottlenecks or an overall lack of co-ordination.

To succeed over the next 24 months, however, and realise the once-in-a-generation opportunity to align digital acceleration with climate progress, that co-ordination will be vital.

KPMG sees the period to the end of 2027 as critical – it’s time to do everything possible to accelerate renewable energy infrastructure and capital projects. The key to unlocking success is to focus on working towards tangible outcomes, using predictive analytics to optimise timelines and ensuring invested capital investment produces real, measurable progress.