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Climate crisis: AI data centres to drive significant increase in energy demand and emissions

By District Energy posted 06-11-2025 11:08

  

International Bar Association

Summary

In April, the International Energy Agency published a report on the ever-growing links between energy and artificial intelligence (AI). It projected that, by 2030, electricity demand from data centres will double globally – and that AI will be the most significant driver of this. Current projections suggest only half of this demand will be met by renewable energy sources.

There is a willingness by the largest companies responsible for building AI-driven data centres to address environmental concernsThe expansion in initiatives such as district energy – in which excess heat from data centres is used to warm office buildings – or Microsoft’s contract with nuclear plant operator Constellation Energy to buy power for its data centres. And there’s also the potential inherent in the self-improving nature of AI to develop new ways of sourcing sustainable energy, updating power grids and making consumption more efficient.  

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