AI boom challenges China’s renewable energy goals
The tech sector’s power consumption is set to surge due to growing demand for AI and cloud services, emphasising the need for rapid expansion of renewable energy.
Chinese tech giants Alibaba, Tencent, and Baidu have made only limited progress in meeting their renewable energy goals, according to a recent Greenpeace East Asia report. The sector’s power consumption is expected to surge due to growing demand for AI and cloud services, prompting calls for more robust action against climate change.
The report tracked the renewable energy use of top 25 cloud providers and data centre operators in China. Although Alibaba, Tencent, and Baidu led in renewable energy procurement and carbon reduction measures, significant disparities remain across the industry. Only five companies reported annual renewable energy ratios exceeding 10%, a notable increase from just one company in 2022.
Despite these advances, only eight companies have committed to 100% renewable energy use by 2030, and only six have set carbon neutrality goals for their direct and indirect emissions. Greenpeace stressed the need for the tech sector to rapidly expand renewable energy consumption to meet the projected 160% increase in power demand for data centres by 2030, driven by AI development.
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