Fossil fuels are a 'crutch': How AI's unlikely winner could be renewable energy (www.cnbc.com)

The growing demand for energy from data centers, fueled by the accelerated expansion of artificial intelligence (AI), is rejuvenating interest in the renewable energy sector, which has faced sluggish growth. Although fossil fuel usage has temporarily increased as a "short-term crutch," experts emphasize that long-term progress in energy generation depends on scaling up renewable resources. The International Energy Agency (IEA) forecasts a notable 60% increase in global electricity generation from renewables by 2030, indicating a shift towards sustainable solutions despite challenges in integration and storage for the variable supply of renewable energy. However, as AI drives electricity demand, the complexities of transitioning from fossil fuels become evident. Experts argue that while renewables are critical for a decarbonized future, significant investment in infrastructure, battery storage, and the grid is essential to meet stability needs, particularly for energy-intensive AI applications. Innovative AI applications could streamline energy management, enhancing efficiency in storage and optimizing overall system performance. This dual benefit of AI and renewable energy presents a significant opportunity for the future energy landscape, fostering a smarter, more sustainable approach to meet the demands of an AI-driven world.