AI Energy Revolution: From Crisis to Opportunity

The rapid growth of AI is driving an unprecedented increase in electricity usage, straining power grids and local resources. Data center owners are confronting the task of scaling their operations sustainably. Utilities do not have clarity or certainty of the true demand for power generation and grid infrastructure, leaving them considering when – or even whether – to invest in new capacity and transmission upgrades.

As AI models grow in complexity, the imperative to adopt energy-efficient technologies and practices becomes even more critical. This includes innovations in cooling systems, server architecture, and overall facility design to optimize energy use without compromising on computational power or speed. The dilemma has reached a point in some regions where utilities are simply saying they cannot meet the current demand for power.

To address these challenges, there is opportunity for data centers, utilities, and communities to work together on the development of integrated strategies that address energy efficiency, strategic partnerships, and community investment initiatives.

While there are some specific challenges faced by each stakeholder group, there are strategies that can foster collaboration and overcome these issues. These include: utility and data center partnerships, flexible connections for on-site generation, innovative tariff structures and risk sharing and construction-ready locations.

Employing innovative strategies and fostering partnerships can expedite data center project timelines, enhance energy cost-effectiveness, and boost positive sentiment within the communities in which data centers are built.

By working together, all parties can contribute to the positive growth of AI across the technology, business, and environmental landscapes. Our latest paper explores the convergence of AI and energy sustainability, including the impact of how AI-related electricity usage is doubling every six months, putting significant pressure on energy infrastructure. We look at:

To learn more on ways to build a bridge between AI and sustainable energy, download our report.