Tech companies driving global energy demand through AI

In recent years, energy experts believed that global energy demand would mainly rise due to population growth and industrialization. However, a new trend is emerging. The demand for energy is now increasingly driven by technology, particularly by advancements in artificial intelligence (AI) and machine learning. Many tech companies are integrating AI into their operations. A recent survey showed that 72% of companies are using AI in some capacity. While engaging with AI becomes common in our daily lives, powering these technologies requires significantly more energy. For example, making a request to ChatGPT uses about 2.9 watt-hours, compared to only 0.3 watt-hours for a traditional internet search. This increase in energy need is expected to skyrocket. In the U.S., power demand for data centers is projected to grow from 147 terawatt-hours (TWh) in 2023 to 606 TWh by 2030. This substantial rise would account for about 11.7% of the total U.S. energy demand. In response, several tech companies are exploring new energy solutions, moving away from relying solely on the U.S. grid. To meet growing energy needs, many tech giants are starting to partner with energy firms to create their own power supplies. These collaborations may encourage investments in clean energy technologies, which could help improve energy efficiency. AI holds promise in this area, potentially lowering global greenhouse gas emissions by 5-10%. Despite this potential, many companies prioritize low-cost and fast energy sources. For instance, Elon Musk's xAI plans to use natural gas for its data centers. Microsoft also mentioned the possibility of using natural gas combined with carbon capture, which contradicts its earlier vow to use carbon-free energy by 2030. On a more positive note, some tech firms are committed to renewable energy. Google and Amazon have promised to use nuclear power for their AI operations. Google recently signed a deal to buy electricity from a future nuclear project. Additionally, both companies are investing in renewable energy and exploring innovative solutions, like advanced solar and geothermal technologies. As tech companies continue to grow and demand more energy, their role in the energy sector will become increasingly important. The future remains uncertain on whether they will focus more on fossil fuels, renewable sources, or nuclear power.