Embracing the AI-Energy-Climate Nexus
Six months ago, at the United Nations Climate Change Conference known as COP28 in Dubai, the world overcame geopolitical divisions (something most thought impossible) to come together behind a practical plan (the UAE Consensus) to promote sustainable prosperity and address the threat of climate change. Nearly 200 governments and all sectors of the global economy were united around a practical, science-based pathway to achieve low-carbon economic growth while keeping the goal of limiting global warming to 1.5°C within reach.
The key to the agreement's success was inclusiveness: no one was left out, no industry was sidelined, and no solution was off the table. As we move towards implementation, the world must do everything we can to accelerate progress. Specifically, that means embracing artificial intelligence, which is expected to have a far-reaching, transformative impact on the energy transition and is predicted to boost global gross domestic product by $7 trillion over the next decade.
The potential of AI in the fight against climate change cannot be overstated. This evolving technology can change the pace of progress by redesigning industrial processes, optimizing transportation systems, maximizing energy efficiency, and minimizing large-scale emissions. AI will also strengthen our ability to adapt through innovations in agriculture, water security, and health.
But advances in AI will inevitably lead to a surge in energy demand. Resolving the conflict between AI's thirst for power and its potential to accelerate a just transition will require technology and energy companies to work together in new and creative ways.
There is reason for optimism: AI is already driving efficiency gains across a range of industries. Abu Dhabi National Oil Company, through AIQ, a technology joint venture with G42 and Presight, used predictive maintenance and machine learning tools to reduce carbon dioxide emissions by more than one million tonnes in just one year. Other power companies are also using neural networks to forecast weather patterns and anticipate peaks and dips in usage to mitigate renewable energy intermittency and storage challenges.
In materials science, researchers are using AI to identify the best molecular structures for carbon capture. The technology is also transforming agriculture, another energy-intensive sector, by analyzing micronutrients, improving crop yields, and reducing water use by up to 40%. Over the next five to ten years, AI is expected to drive breakthroughs in nuclear fusion, hydrogen, modular nuclear power, long-term battery storage, and climate solutions that are yet to be imagined.
The flip side of AI's transformative potential is its insatiable energy consumption, putting further strain on already-stretched power systems. Since 2019, emissions from major AI companies have increased by more than 30%. By 2030, the massive processing needs of AI technologies are expected to double the number of data centers worldwide, and these new operations could consume as much electricity as Canada. Closing this gap will be difficult, as no single energy source today can keep up with such a massive surge in demand.
Big tech companies are starting to work with energy companies to meet this challenge head on. In May, Microsoft and Brookfield signed a deal to develop 10.5 gigawatts of renewable energy capacity by 2030. Masdar, the United Arab Emirates' leading renewable energy company, plans to quadruple its capacity to 100 gigawatts by 2030 and is exploring opportunities to supply clean power to the tech sector. Investment in nuclear-powered data centers is also on the rise, but they will take decades to build. In the meantime, up to 200 billion cubic meters of natural gas (the fossil fuel with the lowest carbon emissions) will be needed annually, as well as significant investments in the global grid infrastructure to meet growing demand.
In November, I will be hosting a Changemakers Majlis in Abu Dhabi to discuss AI and the energy transition.
Sultan Al Jaber
To address these issues and reap the potential benefits of AI, it is important to adopt a holistic approach. To this end, I will be convening a Change Makers Majlis in Abu Dhabi in November – a traditional gathering that encourages the exchange of diverse perspectives – to discuss AI and the energy transition, bringing together business leaders from the energy and technology sectors, policymakers, investors and civil society organizations to rethink the relationship between energy, AI and inclusive economic growth.
Given the UAE's history as a responsible energy supplier, its long-standing commitment to sustainable development, and its emergence as a leader in AI, with investment platforms like MGX, infrastructure developers like G42, and Falcon, the largest and fastest growing large-scale language model in the region, we want to bring all stakeholders together on an issue of critical importance to all of humanity. By building a bridge between energy and AI, we can help realize the UAE consensus and harness the greatest economic opportunity since the First Industrial Revolution.
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Sultan Al Jaber, the UAE's Minister of Industry and Advanced Technology, is COP28 President, CEO of Abu Dhabi National Oil Company and Chairman of Masdar.
Disclaimer: The views expressed by the authors in this section are their own and do not necessarily reflect the views of Arab News.
