According to some views AI would be against or even a barrier to ESG’s an climate-change fight. But does it really the case? Clearly not. Indeed, AI is allowing not only for a productivity boost, but it is also opening new collateral business opportunities in the Energy and Engineering sectors.
One Digit Impact
In 2024 AI’s have consumed 32.8 TWh, assuming to keep a 32% CAGR it will reach 500 TWh in 10 years, which will only be 1,6 % of World Power Consumption.
Source: Wh per AI Requests, Cell Press
New Glo-Local Opportunities
Nonetheless, power grids need to adapt, as new Data Centers will open to deliver cost efficiency, low global latency and data sovereignty. Zaragoza spot, in Spain, is one of those examples.
Source: Zaragoza as mid-point of Internet Submarines Cables
Source: Heraldo de Aragón, Kristina Urresti. 18 Data Centres in the Zaragoza Area
An Affordable ESG challenge
Adding 1 or 2% from AI to the Power Demand will indeed be positive for Utilities to offset drops in demand caused by the increase of domestic and industries renewables self-generation.
In Spain 63% of Installed Capacity is Renewable, but the global demand is declining as energy transition goes further.
Source: Red Eléctrica de España
AI Opens new Business in Engineering and Power Solutions
Although new Data Centres will be sourced by Renewables in more than 50%, the business continuity, heat efficiency, and uninterruptible power supply (UPS) requires new auxiliary power, which unleashes the market of Generator Sets Units.
Source: Mordor Intelligence, Generation Sets Global Markes
Source: Vantage Market Research, Co-Generation Plans Global Markets
AI Opens new Business in Engineering and Power Solutions
Nuclear power is of course carbon-free, but it is not “renewable”. Rooted on the need for its cheap continuous power, the emergence of AI has opened the debate for the policy treatment of Nuclear Energy and the new SMRs.
Source: Statista, Small Modular Reactors, number and status.
We can keep investing on AI with confidence
Bottom line; AI Investments are fully aligned with the principles of responsible investing (PRI) and they will also generate positive collateral effects in the economy.
THE AI CASE
Bravae.com our latest investment on AI and VR, provides the new “Bravae’s” – AI Agents that are trained as Work Assistants with VR hyper-realistic look and interactive environments.
