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The AI energy crisis looms

November 26, 2024
Scott Nover
​3D illustration of a robot hand reaching out to touch a lightbulb.
3D illustration of a robot hand reaching out to touch a lightbulb.
IMAGO/Alexander Limbach via Reuters Connect
In 2021, President Joe Biden pledged to reduce greenhouse gas emissions by 50% from 2005 levels by 2030. But those ambitious climate goals are in doubt because of the awesome demand for energy due to AI.

According to a CNBC analysis of US government data, a single data center operating at 85% capacity consumes as much electricity as 710,000 households or 1.8 million people. There are currently 3,000 data centers across the US, by one estimate, with the greatest number in Virginia (477), Texas (291), and California (285). With artificial intelligence as a leading factor, power demand from data centers is expected to increase 160% by 2030, according to Goldman Sachs. And major tech companies such as Google and Microsoft have revised their environmental goals because of their AI ambitions.

The incoming Donald Trump administration promises to take a deregulatory approach across the board. Lee Zeldin, a former congressman Trump has tapped to lead the Environmental Protection Agency, said he wants to “make America the AI capital of the world.”

So all signals point to Biden’s climate goals, soon in the rearview mirror, slipping further out of grasp.

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