By 2027, global electricity consumption related to AI could increase by 64%, reaching levels comparable to countries like Sweden and the Netherlands. Technology companies are largely responsible for this energy increase as they rapidly expand their data centers to drive AI innovation. Amazon (AMZN), Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) are expected to invest $189 billion in AI investments in 2024 alone.

This innovation boom comes with additional costs: it puts strain on aging power grids and increases emissions from companies trying to meet their net-zero goals. Microsoft’s emissions have increased 30% since 2020 due to its AI investments.

Companies are currently working to keep up in the AI ​​race while reducing their energy consumption by investing in renewable energy sources and other zero-emission options, including nuclear power. Amazon bought a $650 million data center next to a nuclear power plant operated by Talen Energy (TLN) earlier this year. Chipmakers that make the hardware for AI, such as industry leader Nvidia (NVDA), are also working to increase the energy efficiency of their products, while the big tech companies continue to develop large language models and integrate AI into real-world applications.