Market experts say the coming boom in artificial intelligence has the potential to spur large-scale investments in clean energy.
Much has been made of the negative impact AI could have on the climate, given the expected rapid rollout of energy-hungry data centres that will be needed.
The International Energy Agency says the world’s data centres consumed roughly 1.4 to 1.7 per cent of global electricity use in 2022, but projects data centre energy consumption will double by the end of 2026.
Ed Crooks, vice-chair for the Americas with international data and analytics firm Wood Mackenzie, said at a conference in Calgary in that the fastest way to meet AI’s growing electricity needs is to build new natural gas-fired power plants.
But he said that is extremely problematic given countries need to wean themselves off of natural gas usage in order to meet global climate targets.
Crooks says on the bright side, the electricity needs of AI could spur global tech giants to take a leading role in the energy transition. He pointed out tech companies are already investing in wind, solar, nuclear and geothermal and could become among the largest funders of clean electricity projects.
This report by The Canadian Press was first published Oct. 2, 2024.