Rising electricity demand from artificial intelligence is threatening climate goals and increasing emissions in the U.S. power sector, as indicated by two reports released Wednesday.
Data centers, essential for AI infrastructure, are being developed rapidly to meet tech companies’ needs. This has led utility companies to rely more on fossil fuels to satisfy the surge in power demand.
This trend deviates from earlier predictions of gradual electricity demand growth, potentially jeopardizing commitments to reduce fossil fuel dependency. The Trump administration previously highlighted how AI could boost U.S. coal and fossil fuel markets.
“Transitioning to a deeply decarbonized energy system is more complicated than just adding megawatts,” said Prakash Sharma from Wood Mackenzie, an energy consulting firm, in a press release about their report.
Wood Mackenzie’s study found that nearly no countries, including major economies like the U.S., are on track to meet 2030 emissions goals. The report suggests that extraordinary efforts and significant investments in renewable energy could limit global warming to 1.5 degrees Celsius by 2060.
The 2015 Paris Agreement aims to keep global temperature rise below 2 degrees Celsius above pre-industrial levels, ideally close to 1.5 degrees, to preserve a habitable planet. Achieving this would require the global economy to reach net-zero carbon emissions by 2050.
The U.S. has the largest gap between current climate transition investments and the spending needed for net-zero emissions, requiring a 76% increase in investment to meet goals. This is more than twice the increase needed for the European Union and over two-and-a-half times that for China.
“New climate leadership is emerging,” Sharma noted. “While the U.S. increases fossil fuel reliance, China is advancing in low-carbon technologies through electric vehicles and renewable energy.”
The U.S. plans to offer tax incentives and public lands for data centers, largely powered by fossil fuels, as estimated by the International Energy Agency’s analysis.
John Fleming and Jean Su from the Center for Biological Diversity warned that data center energy demand is “threatening the country’s already faltering climate goals” in a report. If AI data centers powered by fossil fuels expand as projected, other U.S. sectors must cut emissions by 60% to meet targets.
“A gas-fed AI boom could prevent us from meeting climate goals,” stated Fleming. “Data centers should be powered by clean, renewable energy.”
McKenna Beck from the Natural Resources Defense Council supported this conclusion, urging that AI electricity demand should not increase emissions. She noted the risk of states backtracking on climate pledges, citing North Carolina’s revised 2030 goals due to rising electricity demand.
Beck emphasized that, with proper policies, AI electricity demand could enhance clean energy rather than increase emissions. However, with the Trump administration’s stance, these policies might need local implementation.
Original Story at insideclimatenews.org