Artificial intelligence (AI) has become an integral part of modern systems, influencing sectors such as healthcare, education, and manufacturing. However, the rapid adoption of AI raises critical questions about the energy required to power the data centers that support these technologies.
As of 2025, the demand for energy to support AI operations is growing faster than current energy systems can accommodate. According to the Electric Power Research Institute, data centers in the United States could consume up to 9% of the national power grid by 2030. Globally, the International Energy Agency (IEA) estimates that electricity demand from data centers could surpass 945 terawatt-hours (TWh) by 2030—more than double the current levels and equivalent to Japan’s total electricity consumption today.
This surge in demand highlights the need for low-carbon, scalable energy solutions. Traditional energy sources, such as fossil fuels and lithium-ion batteries, are proving insufficient due to their environmental impact and operational limitations. As a result, there is growing interest in alternative energy technologies like advanced nuclear, geothermal, and dispatchable solar systems.
Dispatchable solar, which combines solar energy with thermal storage, offers a promising near-term solution. These systems store solar energy as heat, which can be converted into electricity on demand, providing up to 24 hours of continuous clean power. This technology supports the high uptime requirements of AI data centers while offering a more durable and cost-effective alternative to conventional battery storage.
The expansion of data center capacity in the U.S. has been dramatic, reaching over 92 gigawatts (GW) by the end of 2024—nearly 20 times the capacity at the start of 2023. This growth is pushing developers to explore new locations beyond traditional tech hubs, often in regions with limited grid infrastructure. Dispatchable solar systems can help overcome these challenges by enabling reliable power supply in remote or underserved areas.
Building AI infrastructure on a foundation of sustainable energy not only reduces emissions but also promotes regional economic development and enhances energy security. The integration of advanced nuclear, geothermal, and dispatchable solar technologies can support the next wave of digital expansion while aligning climate and technology policies.
— news from The World Economic Forum
— News Original —
How AI infrastructure could help form a sustainable future
AI is a defining force of our era and embedded in everyday systems we rely on – from healthcare to education and manufacturing.
Yet as AI adoption accelerates, we must consider where the energy will come to power the required data centres.
Low-carbon energy solutions that can scale alongside digital infrastructure will become increasingly essential.
The rise of artificial intelligence (AI) is no longer a distant headline – it’s a defining force of our era. From healthcare and education to manufacturing and climate resilience, AI is already embedded in the systems we rely on every day.
As governments and businesses accelerate AI adoption, the focus has largely been on algorithms, hardware and talent, but one of the most urgent and under-discussed questions remains: Where will the energy come from to power it all?
AI is only as clean, inclusive and scalable as the infrastructure beneath it. The early months of 2025 have made one thing clear: the data centre energy demand tied to AI is accelerating faster than the current energy systems that power it.
According to the Electric Power Research Institute, the US data centre industry could consume as much as 9% of all power on the grid by 2030. How we meet this demand quickly and cleanly will shape not only the environmental footprint of the AI era but also its global accessibility and economic impact.
We need AI, but we also need it to be clean
AI isn’t just a buzzword anymore. Whether you understand the mechanics or not, it’s reshaping industries, revolutionizing research and redefining the modern economy. AI has become a foundational layer of innovation, but beneath its sleek digital surface lies an increasingly urgent problem: energy.
The International Energy Agency (IEA) estimates that global electricity demand from data centres could exceed 945 terawatt-hours (TWh) by 2030 – more than double current levels and comparable to the entire electricity use of Japan today.
AI is the single largest driver of this surge, with AI-optimized data centres expected to quadruple their electricity use in just five years. In the US alone, data centres are poised to account for nearly half of the country’s electricity demand growth between now and 2030.
Yet if this growth is powered by fossil fuels or limited by outdated grid infrastructure, the digital revolution could become a climate liability rather than a solution.
The next energy frontier for AI
As AI accelerates, so does the need for a more robust and sustainable energy backbone. Today, most data centres are powered by conventional grid electricity, often supplemented by diesel generators, natural gas and lithium-ion batteries.
While these systems have supported past computing demands, they are increasingly too carbon-intensive, costly and constrained to support the scale and speed required by AI development.
In response, developers and policy-makers are eager for new generations of energy solutions that can deliver clean, reliable andaffordable power quickly and on-demand. Solutions like advanced nuclear, geothermal and dispatchable solar.
Advanced nuclear and geothermal technologies offer immense long-term potential – delivering firm, zero-carbon energy with minimal land use and high reliability. These solutions could play a transformative role in powering the AI era. However, their broader deployment is often constrained by lengthy permitting processes, infrastructure requirements, ‘NIMBY-ism’ and multi-year development timelines.
In contrast, dispatchable solar – solar energy paired with thermal storage – is showing promise as a scalable and near-term alternative. These systems capture solar energy and store it as heat, which can be converted into electricity on demand, enabling up to 24 hours of clean power delivery.
This makes them especially well-suited for energy-intensive applications like AI data centres, where uptime and reliability are critical. Unlike lithium-ion batteries, thermal storage systems do not degrade with repeated use, offering a more resilient and cost-effective approach to supporting AI workloads around the clock.
Where does all the energy go?
Recent data from Wood Mackenzie indicates that US data centre pipeline capacity has exploded to over 92 gigawatts (GW) as of the end of 2024, nearly 20 times what it was at the start of 2023.
Monthly additions now exceed 7 GW, with developers expanding beyond traditional tech hubs to build large-scale campuses in new regions. This rapid growth introduces significant energy demands in areas that may lack adequate grid infrastructure or access to clean generation.
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Dispatchable, site-flexible technologies make it possible to build high-performance data centres in places once considered “off-grid”. By using thermal storage to decouple energy generation from energy use, these systems eliminate the need to be directly tied to grid peaks or fossil fuel backup.
This flexibility can support the development of data centres in remote, underserved or rapidly developing regions, helping broaden digital access while maintaining sustainability goals.
A global model for sustainable infrastructure
We’re entering an era where intelligence, computation and autonomy are becoming foundational to every sector. But these systems don’t run on code alone. They require real, physical energy – and lots of it.
Achieving this requires a rethinking of the global energy mix. Many current sources remain vulnerable to supply chain disruptions and geopolitical risk. Replacing fragile, fossil-based systems with firm, low-carbon energy solutions that can scale alongside digital infrastructure is essential.
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What is the World Economic Forum doing about the Fourth Industrial Revolution?
The World Economic Forum was the first to draw the world’s attention to the Fourth Industrial Revolution, the current period of unprecedented change driven by rapid technological advances. Policies, norms and regulations have not been able to keep up with the pace of innovation, creating a growing need to fill this gap.
The Forum established the Centre for the Fourth Industrial Revolution Network in 2017 to ensure that new and emerging technologies will help—not harm—humanity in the future. Headquartered in San Francisco, the network launched centres in China, India and Japan in 2018 and is rapidly establishing locally-run Affiliate Centres in many countries around the world.
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The global network is working closely with partners from government, business, academia and civil society to co-design and pilot agile frameworks for governing new and emerging technologies, including artificial intelligence (AI), autonomous vehicles, blockchain, data policy, digital trade, drones, internet of things (IoT), precision medicine and environmental innovations.
Learn more about the groundbreaking work that the Centre for the Fourth Industrial Revolution Network is doing to prepare us for the future.
Want to help us shape the Fourth Industrial Revolution? Contact us to find out how you can become a member or partner.
By combining technologies such as advanced nuclear, geothermal and dispatchable solar, we can create resilient, low-emissions infrastructure to support the next wave of digital expansion.
Moreover, building AI infrastructure around sustainable power can unlock benefits far beyond emissions reductions. It decentralizes computing, promotes regional economic development and strengthens energy security, helping to align climate and technology policy.
We don’t need to choose between accelerating AI growth and meeting climate goals. But we do need to act with urgency and foresight. AI may reshape how the world operates, but its long-term benefits depend on reimagining how it is powered. As data centres grow in scale and influence, they must be built on an energy foundation that is resilient, affordable and secure.