AI Powering Sustainability or Burning Power? The Energy Dilemma

Soaring energy demands from AI data centers are testing grid resilience — and pushing investments into clean energy solutions.

AI’s rising energy appetite is prompting a reimagining of energy infrastructure — including nuclear power and expanded grid capacity.

Growing Energy Demand

Data centers are driving global electricity demand, with several facilities facing year-long waits for grid connections due to capacity strains.

Powering Through Nuclear

In 2025, Microsoft committed $80 billion toward AI-optimized data centers, while also investing in clean nuclear reactivation to meet its operational energy needs.

Environmental Trade-Offs

AI’s carbon footprint is an increasing concern: even as computational efficiency improves, overall usage could still raise emissions via Jevons’ Paradox.