AI's Power Hungry Appetite Threatens Global Climate Goals

Japan's new energy strategy, unveiled last week, reveals a stark reality: the rise of artificial intelligence is driving a surge in electricity demand, potentially jeopardizing global efforts to combat climate change, reports Bloomberg.

While Japan's power demand was previously expected to decline, the draft energy strategy forecasts a 22% increase in electricity generation by 2040, fueled in part by the burgeoning AI sector and its insatiable need for data centers.

This trend isn't unique to Japan. China's power consumption has outpaced GDP growth since 2021, partially attributed to AI's emergence, according to the International Energy Agency. Similarly, the US is expected to experience a significant jump in electricity demand over the next five years, driven by AI and other factors.

Tokyo's response to this power surge involves a renewed emphasis on natural gas as a transition fuel, supplementing intermittent renewable sources like wind and solar. The strategy also signals a shift from previous policy, calling for maximum utilization of nuclear power alongside renewables.

While the plan aims to significantly increase renewable energy sources, BloombergNEF suggests that this may not be enough to align with Japan's net-zero emissions target by mid-century.

This trade-off between energy security and climate goals may be replicated globally, as countries grapple with the power demands of AI and other advanced technologies.

"Japan's plans expose an uncomfortable truth," writes Bloomberg's Shoko Oda. "Even for the wealthiest populations on the planet, energy security—including the need to feed a power-hungry technology sector—still trumps near-term climate goals."