The Rise of AI and Energy Demands

The energy consumption of artificial intelligence is rapidly increasing, with AI accounting for 4% of all electricity use in the US last year and projected to rise to 9% by the end of the decade. This surge is primarily driven by hyperscale data centers operated by major tech companies that consume 60-70% of energy used in data storage and processing. The growing demand for cloud computing related to AI is expected to triple the energy needs for these data centers by 2030, significantly complicating efforts to achieve net-zero emissions. With this escalating power demand, big tech companies are reevaluating their energy sources to maintain efficiency and sustainability in their operations, highlighting the urgent need for reliable energy solutions.