Tech companies scramble to solve critical problem as AI demand booms: 'There are opportunities'

As the use of artificial intelligence and the resultant need for data centers grows, tech companies seek ways to meet demand without relying on fossil fuels. 

According to research from the National Bureau of Economic Research, 40% of Americans aged 18-64 use generative AI. The paper states that "overall adoption [of AI] has been faster than either [personal computers] or the internet." 

To support the high demand, tech companies need to bolster their data centers. But many want to avoid worsening pollution. Corporate Knights reported on the tech industry's willingness to utilize eco-friendly power sources, namely nuclear energy. 

Microsoft plans to update its newly acquired Three Mile Island nuclear plant to support new data centers. Meta has a contract to purchase solar power from Invenergy and a purchase agreement for geothermal energy with Sage Geosystems. And OpenAI will work with nuclear startup Oklo, which has OpenAI CEO Sam Altman as chairman, to power data centers. 

While the environmental social governance framework that rated companies based on these categories was flawed, big players still care about responsible investing. The renewability of energy sources such as solar, wind, and hydro appeals to tech investors more than nonrenewable gas power. 

Data available on Grand View Research predicts the AI market will grow at a compound annual growth rate of 35.9% from 2025 to 2030.

As Corporate Knights put it: "To get where we're going, we'll need a whole lot more power."

Powering data centers with environment-conscious energy creates promising investment opportunities and jobs in the renewable energy sector. As the world moves toward a cleaner economy, the dependence on fossil fuels lessens, improving economic resilience. 

Clean energy and sustainability-focused businesses can outperform fossil fuel stocks in long-term growth. The economy benefits from turning toward clean energy, and investors stand to profit. 

This shift toward a cleaner economy also means decreased pollution and a cooler planet. When companies like Microsoft and Meta choose green energy, it reduces the environmental strain caused by burning gas, oil, and other fossil fuels. 

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Joe Dominguez, the president and CEO of Constellation Energy, which owns the Three Mile Island plant, said that powering "data centers requires an abundance of energy that is carbon-free and reliable every hour of every day," per DatacenterDynamics. 

He continued: "Nuclear plants are the only energy sources that can consistently deliver on that promise."

Sheldon Kimber, Intersect Power's CEO, said in an interview with Latitude Media: "There are opportunities to make these data centres some of the most clean-powered industrial projects in the country, and at competitive costs."

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