In the future, the rapidly developing field of AI will help reduce carbon dioxide emissions
The rapid growth of the generation artificial intelligence sector will lead to the fact that by 2027 it will begin to consume the same amount of electricity per year as which was used by all of Spain in 2022, new modeling from Morgan Stanley shows.
The rapid development of the artificial intelligence (AI) industry will lead to an annual growth of energy consumption of 70 percent, from less than 15 terawatt-hours (TWh) in 2023 to 224 TWh by 2027 — a sum close to the 230 TWh used by all of Spain during 2022.
However, a report from Morgan Stanley argues that the AI sector will have a positive impact on the global climate, as the industry's widespread use of clean energy will result in greater reductions in carbon emissions.
The potential of artificial intelligence to help the world improve the efficiency of power grids and develop new emissions-reducing technologies, including carbon recycling and sequestration (CCU) machines, will outweigh the sharp rise in emissions caused by the energy consumption of the artificial intelligence industry, the company says.
Energy experts have previously raised concerns about plans to rely on carbon capture and storage (CCS) and CCU technologies to combat global warming because they are unproven.
Growing The AI sector's demand for electricity will require a massive build-out of new clean energy generation capacity, a Morgan Stanley report said, as it argues that renewable energy companies and data center infrastructure companies will be boosted by AI growth.
The Morgan Stanley document is based on concerns from experts and investors that the growth of the artificial intelligence sector will lead to a sharp increase in the use of fossil fuels, leading to an increase in carbon dioxide emissions that contribute to global warming.
Experts have previously warned that the growing demand for electricity in the artificial intelligence industry will lead to an increase in the use of fossil fuels, even if the sector is powered directly by clean energy sources, other areas will be forced to use hydrocarbons instead.
The situation could exacerbated by growing demand for clean energy from competing sectors, including the green industry and to power the ever-growing fleet of electric vehicles.
Recall that in March 2023, the CEO of the state-owned arms company of Finland and Norway's Nammo, Morten Brandtseg, said the company's capacity is limited by power shortages as its social media data center uses all of its reserve power.
“We are concerned because we see that storing cat videos puts threat to our future growth,” Brandzeg explained in an interview with the Financial Times.
Earlier at Davos in early 2024, OpenAI CEO Sam Altman told Reuters that the artificial intelligence sector will consume much more energy than people expect in present time, and that breakthroughs in nuclear fusion technology will be required to meet demand.
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