The surge in AI applications is driving an unprecedented need for data center capacity, leading to a substantial rise in global power consumption. A recent series by Schroders Greencoat explores how sectors across the economy are driving demand for renewable energy.

Data centers are essential for AI operations. According to the International Energy Agency (IEA), the share of global electricity demand coming from data centres is predicted to double from 2022 levels by 2026.

“In short, the renewables sector is at the intersection of two global mega-trends – the AI revolution and global decarbonisation,” said Paul O’Donnell, partner at the specialist manager focused on the renewable energy infrastructure sector.

“Access to renewable energy to meet the demand is critical to ensure tech companies and governments can meet their decarbonisation targets – and can be vital to ensuring projects pass planning hurdles,” O’Donnell added.

Read the full insight here.