Giant investments in data centres are giving renewables an opening to outcompete gas

Mark Mann | Source: Corporate Knights | Posted 04/04/2025

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As big tech companies try to compute more but pollute less, greener AI is coming, but gas remains persistent

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The surge in artificial intelligence (AI) adoption has led to a significant increase in demand for computing power, prompting major investments in data centers by tech giants like Amazon, Microsoft, and Google. As these companies race to develop advanced AI tools, they are also facing the challenge of meeting their energy needs sustainably. The International Energy Agency reported a doubling of annual investment in data center construction in the U.S. over the past two years, with data centers consuming a substantial portion of state electricity, such as over a quarter in Virginia in 2023.

This growing demand for energy presents an opportunity for renewable sources to outcompete natural gas in powering data centers. Companies are increasingly turning to renewables and battery storage to reduce their carbon footprint. Initiatives like Intersect Power's partnership with Google aim to deliver $20 billion in renewable energy for data centers by 2030. While gas remains a part of the energy mix, hyperscalers are exploring nuclear energy as a cleaner alternative, with companies like Microsoft and Meta investing in nuclear projects to meet their energy needs sustainably.

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Giant investments in data centres are giving renewables an opening to outcompete gas

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