What Will Power the A.I. Revolution?

January 7, 2025

The energy that will power the booming data-center industry could end up increasing emissions, at least in the short term.

Last week, Microsoft announced that it would spend approximately $80 billion during this fiscal year to build data centers for its booming artificial intelligence business.

That gargantuan sum is a testament to the opportunity that Microsoft and other tech giants see in A.I.

It also has the makings of a climate conundrum.

In order to power all of those data centers, Microsoft and other tech companies building similar projects are going to need huge amounts of electricity. That means ever greater strains on a power grid that is still, to a significant extent, fueled by natural gas, and to a lesser extent, coal.

And, as the A.I. boom continues, we’re starting to learn that it will mean more planet-warming emissions, at least in the short term.

In the next three years alone, data centers are expected to as much as triple their energy use, according to a new report supported by the U.S. Department of Energy. Under that forecast, data centers could account for as much as 12 percent of the nation’s electricity consumption by 2028. McKinsey & Company, the international consulting firm, expects global demand for data centers to grow at roughly 20 percent a year through the end of the decade.

There’s rich irony in the fact that it is Microsoft and other tech companies that are responsible for a surge in energy demand, and thus an uptick in planet warming emissions.

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