AI is not a threat to climate progress; it is likely the greatest accelerator of it


      This global study explores how organisations are using AI to drive sustainability and where action must accelerate. It draws on insights from over 1,200 executives across twenty markets, spanning energy producers (utilities, renewables, infrastructure developers) and major energy consumers (hyperscalers, data center operators, and technology firms), all of whom play a critical role in shaping global energy solutions.

      Core themes

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      AI is expanding its climate handprint, powering adaptation solutions, enabling greater energy efficiency, biodiversity protection, and circular innovation

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      System-wide transformation: AI is enabling real progress on sustainability across value chains, from manufacturing and transport to agriculture and buildings, and helping to create positive value for companies who are addressing their climate risk exposures

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      Progress is uneven particularly due to challenges in scaling clean energy solutions globally. Infrastructure bottlenecks, policy delays, and financing barriers risk slowing down momentum. The next 24 months, through 2027, will be decisive in closing this gap

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      Market pull for innovation: AI is growing fast and creating new markets for advanced clean technologies, reducing commercialisation cycles from decades to years


      AI's dual promise: Enabling positive climate outcomes and powering the energy transition

      The key question is whether your AI strategy is accelerating your climate goals or undermining them?

      Revelations from our research call for immediate attention





      AI’s energy demand is undeniable, and it’s reshaping how we think about power systems and infrastructure. Balancing this demand with sustainability is a real challenge, but business leaders see opportunity as well: most believe renewable energy can meet AI’s growing needs, accelerating the shift to cleaner, smarter grids and enabling sustainability at scale. The key question is whether our energy infrastructure can evolve fast enough to keep pace with AI’s expansion.
      Anish De

      Global Head for Energy Natural Resources & Chemicals (ENRC)

      KPMG International


      This report speaks directly to the key stakeholder groups (Hyperscalers, Utilities, Developers, Investors and Governments) who stand at the crossroads of AI acceleration and climate responsibility. Each faces a different version of the same challenge: how to advance AI without undermining sustainability and how to use sustainability as a competitive advantage.

      Key Contact

      Anish De

      Global Head for Energy Natural Resources & Chemicals (ENRC)

      KPMG International

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