The world’s obsession with AI is driving a sharp demand for electricity. While tech companies are the biggest buyers of clean energy, overall CO2 emissions are rising rapidly.
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AI is fueling energy consumption and, in turn, carbon emissions.
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Despite companies’ efforts to consume clean energy, carbon emissions are rising.
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The top ten tech companies consume more energy in a year than Spain or Australia.
Did you know that the top ten tech companies consume more energy in a year than Spain or Australia?
This comes from a recent eye-opening report from the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA). The message is clear: AI is fueling energy consumption and, in turn, carbon emissions.
The top ten tech companies leading energy consumption are the following: China Mobile, Amazon, Samsung Electronics, China Telecom, Alphabet, Microsoft, TSMC, China Unicorn, SK Hynix, and Meta.
The digital companies that were assessed in the report consumed 581 TWh of electricity, or 2.1% of global demand.
Companies attempt to rely on clean energy, and companies like Amazon, Meta, Alphabet, Microsoft, and Orange lead clean energy procurement.
Worryingly, the Chinese companies that dominate the top ten list aren’t mentioned as clean energy buyers.
Despite companies’ efforts to consume clean energy, carbon emissions are rising. In 2023, 166 companies reported combined operational emissions totalling 297 million tCO2e. In simpler terms, the carbon footprint left by those companies is equivalent to the combined annual emissions of Argentina, Bolivia, and Chile.
AI, as one might suspect, is the main culprit here.
“The rapid growth of AI is expected to shape energy demand and emission trajectories, increasing the urgency for the sector to adopt robust, science-aligned climate strategies,” the report reads.
Acknowledging the increased demand for energy, major tech companies are looking for opportunities to invest in nuclear energy, namely, micro reactors. While nuclear reactors don’t produce carbon, they create their own problems with nuclear waste disposal.
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