AI and Energy: Challenges and Solutions Discussed in Paris

In Paris, an unprecedented conference organized by the International Energy Agency (IEA) brings together experts, industry leaders, and tech giants to explore the promises and challenges of artificial intelligence in addressing climate urgency and rising energy demands.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Artificial intelligence (AI) is redefining the global energy sector, but its rapid development raises crucial questions about its environmental impact. On Wednesday, December 4, and Thursday, December 5, 2024, Paris is hosting an international conference organized by the International Energy Agency (IEA) to analyze the implications of AI for energy and climate. This groundbreaking initiative brings together more than 200 experts, industry leaders, policymakers, and tech giants from 25 countries.

The main objective is to discuss the “two sides of the coin”: the opportunities offered by AI to optimize energy resources and the environmental challenges tied to its high electricity consumption. According to the IEA, data centers, the backbone of AI technologies, currently account for 1% of global electricity consumption. In some regions, such as Ireland and Virginia (United States), this proportion already exceeds 20%.

Optimizing Resources with AI

Despite its growing energy footprint, artificial intelligence is also seen as a powerful tool for improving energy system efficiency. AI technologies can regulate the electricity consumption of buildings, optimize the production of renewable energies, and accelerate research on electric batteries that are less dependent on scarce resources. These advancements could profoundly transform the global energy transition.

However, the rise of digital solutions increases the pressure on existing infrastructures. The geographic concentration of data centers, particularly in the United States, Europe, and Asia, creates strains on electrical grids and slows connection projects, according to the IEA.

Responding to the Climate Crisis

Tech leaders such as Google, Microsoft, and Amazon are ramping up efforts to power their data centers with decarbonized energy sources such as wind, solar, and now nuclear energy. Over five years, Google’s CO2 emissions have risen by 48%, highlighting the urgency for a transition to more sustainable energy models.

The IEA calls for enhanced cooperation between the energy, technology, and policymaking sectors to address these challenges. However, as Siddharth Singh, from the IEA’s Forecast Division, explains, the available data remains insufficient to fully anticipate AI’s impact: “We know how many electric cars are produced each year, but estimating the number of data centers under construction is still complex.”

The Catabola electrification project, delivered by Mitrelli, marks the first connection to the national grid for several communities in Bié Province.
The Algerian government plans a full upgrade of the SCADA system, managed by Sonelgaz, to improve control and supervision of the national electricity grid starting in 2026.
Facing annual losses estimated at up to $66mn, SEEG is intensifying field inspections and preparing the rollout of smart meters to combat illegal connections.
The British government confirms its ambition to decarbonise the power sector by 2030, despite political criticism and concerns over consumer energy costs.
Enedis plans a €250mn ($264mn) investment to strengthen Marseille’s electricity grid by 2030, including the full removal of paper-insulated cables and support for the port’s electrification.
Energy ministers coordinate investment and traceability to curb China’s dominance in mineral refining and stabilize supply chains vital to electronics, defense, and energy under a common G7 framework.
Electricity demand, amplified by the rise of artificial intelligence, exceeds forecasts and makes the 2050 net-zero target unattainable, according to new projections by consulting firm Wood Mackenzie.
Norway's sovereign wealth fund generated a €88 billion profit in the third quarter, largely driven by equity market performances in commodities, telecommunications, and finance.
The German regulator is preparing a reform favourable to grid operators, aiming to adjust returns and efficiency rules from 2028 for gas pipelines and 2029 for electricity networks.
Bill Gates urges governments and investors to prioritise adaptation to warming effects, advocating for increased funding in health and development across vulnerable countries.
The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.
The study by Özlem Onaran and Cem Oyvat highlights structural limits in public climate finance, underscoring the need for closer alignment with social and economic goals to strengthen the efficiency and resilience of public spending.
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.