Growing energy demand risks climate goals

The rapid expansion of AI and cloud computing is increasing global electricity demand, raising concerns over the environmental impact. Data centres, primarily in the US, Europe, and Asia, are driving a surge in fossil fuel usage as renewable energy deployment struggles to keep pace. Coal and natural gas are being used to bridge the gap, undermining global decarbonisation targets.

In the US, data centre hubs like Northern Virginia have prompted utilities to extend fossil-fuel plant lifespans and construct new gas facilities. This trend mirrors developments in Poland, Germany, and Malaysia, where coal remains a significant energy source due to insufficient renewable capacity. Critics argue that current measures to offset emissions, such as sourcing clean energy, are not sufficient to counter the overall carbon footprint of the industry.

Efforts to decarbonise the sector include investments in advanced nuclear reactors and renewables. However, such solutions face delays, leaving utilities reliant on natural gas, described by analysts as cost-effective but imperfect. Projections suggest US natural gas demand could rise significantly, exacerbating emissions and hindering the clean-energy transition.

International commitments, like Azerbaijan’s Digitalisation Day initiative at COP29, highlight the urgency of balancing digital growth with sustainability. While global data centres aim to adopt green practices, the slow pace of renewable energy integration risks prolonging reliance on fossil fuels and delaying climate progress.