The United Nations calls for a rapid shift towards renewable energy to meet the escalating electricity demands of AI and data centers, highlighting the importance of this transition to both climate action and economic security. In a speech outlined in the UN Energy Transition Report 2025, urging major tech companies to strengthen all data centres with 100% renewable energy by 2030.
This call is due to the continued surge in energy consumption in the technology sector, driven especially by AI development and data centers. The International Energy Agency (IEA) reported in 2024 that data centers consumed 1.5% of the world's electricity. This is growing rapidly. A typical AI data center can consume as much power as 100,000 homes, and the largest centre currently under construction is projected to use 20 times that amount. By 2030, data centers could consume as much power as everything today. AI developer Google reported an annual electricity consumption increased 27%, despite an overall carbon emissions increase of 51% since 2019 and a 12% decline in data center emissions in 2024.
Guterres emphasized that AI can increase the efficiency, innovation and resilience of energy systems, but that its energy intensity calls for a sustainable approach. He argued that the clean energy future “is no longer a promise. That's true.” US$2 trillion was invested in clean energy in 2024, with USD800 billion more than fossil fuels, up nearly 70% over a decade. New data from the International Renewable Energy Agency (Irena) shows that solar energy is now 41% cheaper than fossil fuels and offshore winds are 53% cheaper. Over 90% of new renewable energy around the world produced electricity because it was less than the cheapest new fossil fuel alternatives.
The UN report was developed with support from the IEA, International Monetary Fund (IMF), Irena, OECD and the World Bank, and highlights that renewable energy is currently roughly in line with fossil fuels in its global installed power capacity. Last year, almost all new electricity capacity came from renewable energy, with all continents adding more renewable capacity than fossil fuels.
Despite this advancement, the transition is neither fast nor fair enough. While OECD countries and China account for 80% of the world's renewable capacity, Africa accounts for 60% of the world's highest solar power generation, and last year received just 2% of the world's clean energy investments. Guterres asked the government to use the new National Climate Plan (NDC) for several months, in line with the 1.5°C limit. Integrate energy, climate and sustainable development priorities. And to realize the global promise to double the capacity of double energy efficiency and triple renewable energy capabilities by 2030, these plans must be supported by a long-term roadmap for a fair transition to net-zero energy systems by 2050.
The Executive Director further emphasized the need to invest in 21st century energy systems, including modern, flexible, digital grids, large-scale energy storage scale-ups, and electric vehicle charging networks. For every dollar invested in renewable power, there is just 60 cents in grid and storage, with a one-to-one ratio.
The United Nations also highlighted the potential of AI to enable the energy sector through solutions that improve grid performance, responsiveness, forecasting and integration of variable renewable energy. Irena points out that AI-enabled asset management can improve operational efficiency across renewable assets, and AI algorithms are used to predict congestion, adjust distributed energy resources, and optimize shipping.
