AI and hot air hitting renewable energy impacts

Scientists have warned progress on the shift to renewable energy is being negated by the rising demand for energy from AI data centres and air conditioning systems.

The team from the University of Sussex issued a study which concluded the rapid expansion of renewable energy is being used to meet rising electricity demands rather than displacing fossil fuels.

They revealed energy-hungry artificial intelligence data centres and greater use of air conditioning in a fast-heating world are among several factors threatening to undermine the climate gains made by renewables.

Researchers from Sussex and Vienna’s Central European University found record growth in solar power in the first three quarters of 2025. For the first time this rise in clean electricity outpaced global growth in electricity demand, yet the researchers warn this fragile balance is now starting to tip back the other way.

They added since the 2015 Paris Agreement, which aims to limit global temperature rises, global wind and solar power generation has grown rapidly, yet emissions from the power sector have continued to rise as electricity demand has grown even faster. Analysis of global energy demand in 2025 found artificial-intelligence data centres are a major driver, alongside increased use of air conditioning as people struggle to cope with hotter temperatures.

Electrification of transport and consumer trends such as bigger cars were also highlighted as culprits. The report found these pressures are eroding efficiency gains made by individual countries. Projections to 2030 warn that increases in electricity use could consume most new renewable supply unless proactive measures are taken to limit demand.

“Renewables are scaling at record speed, but demand growth from data centres, cooling and transport is running just as fast,” said Professor Felix Creutzig, Bennett Institute chair at the University of Sussex. “We need policies that curb unnecessary energy use and shape demand so that clean electricity can have the intended effect of cutting emissions from fossil fuels.”

The study’s results came as the International Energy Agency said demand for electricity was increasing.

It said global power demand is set to grow by more than 3.5% per year on average over the rest of this decade, with electricity generation from renewables, natural gas and nuclear all expanding to keep pace.

The IEA’s annual report on global electricity systems and markets found electricity demand is on course to grow at least 2.5 times as fast as overall energy demand through 2030 as the Age of Electricity takes hold. This is driven by rising industrial use of electricity, the continued uptake of electric vehicles, higher air conditioning use and the expansion of data centres and AI.

While emerging and developing economies remain the main engines of electricity demand growth, consumption from advanced economies is also rising after 15 years of stagnation – contributing to a fifth of the total increase in power demand through 2030.

The report finds that global electricity generation from renewables − boosted by record deployment of solar PV – is now in the process of overtaking generation from coal, after virtually drawing level with it in 2025 based on the latest available data. Nuclear power output also rose to a new record. The momentum behind low-emissions sources of generation continues to 2030, by which time renewables and nuclear are together set to generate 50% of global electricity, up from 42% today.

“At a moment of significant uncertainty across energy markets, one certainty is that global electricity demand is growing much more strongly than it did over the past decade. In this Age of Electricity, the increase in global power consumption through 2030 is set to be equivalent to adding more than two European Unions,” said IEA director of energy markets and security Keisuke Sadamori. “Meeting this demand will require annual investment in grids to rise by 50% by 2030. Expanding flexibility will also be crucial as power networks continue to evolve – so will a strong focus on security and resilience.”

They added since the 2015 Paris Agreement, which aims to limit global temperature rises, global wind and solar power generation has grown rapidly, yet emissions from the power sector have continued to rise as electricity demand has grown even faster.

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