Power Play – AI’s Dual Role in Energy Consumption and the Green Transition

Since the launch of ChatGPT in late 2022, the rapid proliferation of generative AI technologies has sparked a record surge in demand for data centre capacity. This has led to a boom in data centre construction across the US and globally. The World Economic Forum reports energy consumption by data centres in Europe is predicted to triple by 2030, requiring large increases in power supply. Across the United States, the demand placed on both electricity supply and infrastructure by the rapidly growing number of data centres is already said to affect energy prices for both consumers and businesses.

In economies recently impacted by a cost of living crisis and significant inflation of prices for goods and services, any upward pressure on household bills is a likely cause for concern. Data centre driven energy price increases present a potential reputational risk for generative AI and the tech companies associated with them.

However, it is key to remember that artificial intelligence is more than just large language models. While the energy requirements of generative AI may be contributing to a power consumption problem, AI is also set to be part of the solution. The Marks & Clerk AI report 2024 shines a spotlight on the role AI-powered innovation can play and is already playing in the green transition.

2023 saw a 35% growth in green AI patent publications at the European Patent Office, significantly higher than the trend for AI overall. From energy conservation to alternative energy production, the ability of AI to handle vast amounts of data enables it to drive innovation, increase efficiency, and help understand and mitigate the environmental impact of various industries. As an example, AI can analyse weather forecast patterns and power grid data to optimize generation and storage of intermittent renewable energy sources. To discover more ways in which AI is assisting the green revolution, you can read the Marks & Clerk AI report 2024 here.