‘Sustainable AI’ requires close collaboration between data centers, grid stakeholders: Schneider Electric

Brian Martucci | Source: Utility DIVE | Posted 05/03/2025

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Without effective planning, the expected surge in AI power demand could curtail the industry’s growth and possibly precipitate an energy crisis, a new report says.

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Schneider Electric emphasizes the importance of collaboration between data centers and grid stakeholders to achieve 'Sustainable AI' in the U.S. The company suggests that data centers can stabilize the grid by utilizing demand response capabilities, on-site renewable energy, and optimizing operations. In their report, co-authors Rémi Paccou and Fons Wijnhoven highlight the potential for AI to either exacerbate energy challenges or contribute positively to the power sector, depending on how growth is managed.

Forecasts for AI power demand vary significantly, with Schneider predicting a range from 16.4 GW to 65.3 GW by 2030, while other estimates suggest even higher figures. The report warns that infrastructure decisions made today will shape the future of AI's energy consumption and its impact on the electricity system. The 'Sustainable AI' scenario envisions a cooperative relationship between the AI industry and the electrical grid, focusing on optimizing energy use and planning to mitigate environmental impacts.

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‘Sustainable AI’ requires close collaboration between data centers, grid stakeholders: Schneider Electric

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