Hello!
I receive numerous emails telling me about the latest “cutting edge technology” that “enables best-in-class” solutions by “utilizing artificial intelligence” and “advanced machine learning” to solve a climate-related problem.
But what I have often wondered is how these power-hungry tools can square the circle of solving the problem while simultaneously being a part of it.
Well, it seems like I wasn’t alone in thinking about AI’s contribution to the climate crisis as Morgan Stanley recently released a report about the boom in data centers increasing global emissions.
The report notes that the rise in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade and accelerate investments in decarbonization efforts.
Hyperscalers, which include Google, Microsoft, Meta and Amazon, are driving the proliferation of electricity-guzzling data centers to expand their AI and cloud computing technologies.
At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030.
It’s not all finger wagging here, though, as there are some examples of companies that are looking at solutions to this problem.
Just this week, Microsoft announced the introduction of a new supplier decarbonization team focused on addressing this exact issue, according to a report by ESG Today.
The tech firm recently reported that Scope 3 emissions in 2023 were more than 30% higher than in 2020, largely driven by significant growth in data centers to meet increasing demand for AI computing power.
“Products and services related to energy management and efficiency are playing an increasingly important role, in particular with the unprecedented growth of energy-hungry digital technologies, notably artificial intelligence and data centers,” said Lily Dai, senior research lead for sustainable investment research at LSEG.
The build-out of the giant computer warehouses will increase investments in clean power development; energy efficient equipment and so-called green building materials, Morgan Stanley said.
Carbon capture, utilization, and sequestration (CCUS) technology and carbon dioxide removal (CDR) processes are also expected to get a boost as tech companies try to keep their climate promises, the report said.
Scroll down for more on how climate-change is heating up our summers, creating more extreme weather events and damaging economies.