The AI surge is straining power grids and rekindling fossil-fuel generation even as tech companies tout climate benefits. Data centers account for roughly 1% of global electricity use but are poised to climb sharply; BloombergNEF projects U.S. data-center demand could reach 8.6% of electricity by 2035, while Ireland already devotes about a fifth of its power to data centers. Proponents say AI can shave emissions by optimizing grids, cooling and industrial processes; Google cites a 40% cut in data-center cooling energy, and utilities report efficiency gains. Critics counter that opaque reporting, rebound effects and AI’s role in boosting oil-and-gas output and consumer demand undercut those gains. Regulators and advocates are weighing moratoriums, taxes and “enabled emissions” disclosures as firms explore renewables, nuclear and long-term contracts to power AI’s growth. The bottom line: AI’s net climate impact hinges on transparency, siting, energy sourcing and where the technology is deployed.





























