AI needs electricity around the clock. And that's bringing gas back to the center of the system

The rapid expansion of Artificial Intelligence is creating unprecedented demand for electricity, challenging the sustainability commitments of major tech companies. Despite pledges for renewable energy powering data centers, the insatiable energy needs of AI are leading to a resurgence in natural gas as a primary power source to meet immediate deficits. This shift highlights a growing tension between technological advancement and environmental goals within the digital sector. Leading tech giants like Google and Microsoft now consume vast amounts of electricity, exceeding that of many nations, with their data center footprints ballooning. While these companies secure renewable energy contracts, their reported emissions have paradoxically increased, prompting scrutiny over the integrity of their climate strategies. The substantial energy requirements of AI and cloud computing are demonstrating that digital infrastructure has a significant, physical impact on energy grids. Projections indicate a dramatic rise in electricity consumption driven by data centers and similar energy-intensive digital operations. This surge is expected to significantly increase their share of overall energy demand, potentially by as much as 350% by 2030 in regions like the US. Such escalating demand is already causing market disruptions, as evidenced by sharp increases in energy capacity prices, which will likely be passed on to consumers. The race to supply this "golden era of energy demand" is highlighting the physical limitations of current energy infrastructure and the critical role of fossil fuels in bridging the gap.