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arXiv · 2507.10750

AI and the Net-Zero Journey: Energy Demand, Emissions, and the Potential for Transition

Pandu Devarakota·Nicolas Tsesmetzis·Faruk O. Alpak·Apurva Gala·Detlef Hohl
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Abstract

Thanks to the availability of massive amounts of data, computing resources, and advanced algorithms, AI has entered nearly every sector. This has sparked significant investment and interest, particularly in building data centers with the necessary hardware and software to develop and operate AI models and AI-based workflows. In this technical review article, we present energy consumption scenarios of data centers and impact on GHG emissions, considering both near-term projections (up to 2030) and long-term outlook (2035 and beyond). We address the quintessential question of whether AI will have a net positive, neutral, or negative impact on CO2 emissions by 2035. Additionally, we discuss AI's potential to automate, create efficient and disruptive workflows across various fields related to energy production, supply and consumption. In the near-term scenario, the growing demand for AI will likely strain computing resources, lead to increase in electricity consumption and therefore associated CO2 emissions. This is due to the power-hungry nature of big data centers and the requirements for training and running of large and complex AI models, as well as the penetration of AI assistant search and applications for public use. However, the long-term outlook could be more promising. AI has the potential to be a game-changer in CO2 reduction. Its ability to further automate and optimize processes across industries, from energy production to logistics, could significantly decrease our carbon footprint. This positive impact is anticipated to outweigh the initial emissions bump, creating value for businesses and society in areas where traditional solutions have fallen short. In essence, AI might cause some initial growing pains for the environment, but it has the potential to support climate mitigation efforts.

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Pandu Devarakota, Nicolas Tsesmetzis, Faruk O. Alpak, Apurva Gala, Detlef Hohl. 2025-07-14. AI and the Net-Zero Journey: Energy Demand, Emissions, and the Potential for Transition. https://arxiv.org/abs/2507.10750

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