Despite serving a valuable purpose to us all, tech companies face increasing scrutiny as they consume ever-larger amounts of electricity. The artificial intelligence boom has made questions about the environmental impact of digital technology increasingly relevant in everyday conversation because the demand for energy in data centers will raise energy prices for all.

Data centers are the backbone of the internet. Keeping AI models and the new digital services they offer just a click away requires exponentially more electricity than earlier technologies. The rapid growth of AI-powered data centers is creating unprecedented stress on electrical grids. There were 5,426 data centers nationally as of March 2025, and the number is skyrocketing. Collectively, these centers consumed about 17 gigawatts (GW) of power in 2022, up from 7.9 GW in 2014 (for context, a large nuclear power plant generates about 1 GW), according to the Environmental and Energy Study Institute.

While a transition to diverse clean energy sources is underway, including controversial nuclear power investments, the rapid growth of AI has fundamentally altered the sustainability landscape for cloud computing providers.

The AI-Fueled Energy Crisis

Data centers accounted for about 1.5% of global electricity consumption in 2024, and demand is expected to double by 2030 because of artificial intelligence, according to recent analysis by Scientific American. We must look beyond efficiency improvements, which can no longer offset rising demand.

The scale of AI’s energy appetite is staggering. AI-specific servers in these data centers are estimated to have used between 53 and 76 terawatt-hours of electricity in 2024 alone, enough to power more than 7.2 million U.S. homes for a year, according to an MIT Technology Review analysis.

China and the United States are the most significant consumers of data center power, accounting for nearly 80% of global growth expected by 2030. Consumption is expected to increase by around 240 TWh (+130%) in the United States, compared to the 2024 level, the International Energy Agency (IEA) reports.

The Nuclear Pivot?

Faced with massive and growing energy demands, major technology companies have made a controversial pivot toward nuclear power, a dramatic shift from their previous focus on wind and solar energy alone.

Google, Amazon, Microsoft, and Meta are exploring or investing in nuclear power projects. Driven by the energy demands of their data centers and AI models, their announcements mark the beginning of an industrywide trend, CNBC reported in late 2024.

In September 2024, Microsoft signed an agreement to revive the Three Mile Island nuclear plant in Pennsylvania. Google recently announced several nuclear initiatives, including a 50-megawatt nuclear power deal to supply data centers in Tennessee and Alabama.

Google and Amazon have invested in nuclear reactors that will use tri-structural isotropic (TRISO) particle fuel: golf ball-size graphite spheres packed with uranium, carbon, and oxygen, IEEE Spectrum reports. Amazon also made substantial nuclear commitments, including a $650 million deal for a data center powered by one of the largest U.S. nuclear plants, according to Trellis reporting.

Nuclear Regulation In Flux

However, these nuclear ambitions face regulatory challenges. The Trump Administration is pushing an aggressive nuclear energy expansion strategy that could significantly reshape America’s clean energy landscape. The Trump Administration is moving forward with an aggressive nuclear energy expansion strategy in 2025 that could dramatically reshape America’s clean energy landscape. Through a series of executive orders, the Administration has set an ambitious target to quadruple U.S. nuclear capacity from 100 GW to 400 GW by 2050, a move that supporters argue could dramatically reduce carbon emissions from the power sector. As part of this nuclear revival, the Administration has directed the Army to build a new reactor within three years that will power energy-intensive artificial intelligence systems and critical defense infrastructure. This policy shift includes streamlining the Nuclear Regulatory Commission review process to accelerate deployment of next-generation reactor technologies, including small modular reactors that promise enhanced safety and flexibility.

Environmental groups remain divided on nuclear power’s role in combating climate change. Outwardly, the Trump Administration’s nuclear aspirations represent one of the most significant federal commitments to carbon-free baseload power in decades, albeit far behind the scope of the Inflation Reduction Act’s renewable goals. The new rules position nuclear energy as a cornerstone of America’s transition away from fossil fuels, but the Administration’s commitment to oil remains firm.

Renewable Energy: Still Growing Despite Nuclear Pivot

While nuclear power captures headlines, renewable energy continues to expand dramatically. Wind and solar dominate annual U.S. electricity capacity expansion through mid-2025, and the global renewable energy sector continues its rapid expansion. In fact, global energy investment was expected to exceed $3 trillion for the first time in 2024, and $2 trillion was dedicated to clean energy technologies and infrastructure, according to IEA reports.

Solar and wind make up nearly 91% of new power capacity introduced through May 2025. For example, Meta announced almost 800 megawatts (MW) of wind and solar power generation investment as part of its plan to reach net-zero emissions across its entire value chain by 2030.

Google maintains its position as the largest corporate purchaser of renewable energy globally. It is participating in numerous utility-scale wind and solar energy projects across the globe. Google, along with Facebook and Apple, was among the first corporations to make 100 percent renewable energy commitments several years ago. These companies haven’t abandoned their renewable energy commitments, but they’ve adjusted their rhetoric and are pursuing a “clean energy portfolio” approach that includes both renewables and nuclear power.

Meanwhile, regional challenges persist that will create the opportunity for breaking with environmental norms. Data center energy use has already surpassed 10% of electricity consumption in some areas, according to IEA analysis. Google faces shortages in renewable energy in local markets, particularly in “Data Center Alley” in Northern Virginia, where data centres account for between 2% and 4% of total electricity consumption today. The primary electric utility provider in Northern Virginia, Dominion Energy, still relies heavily on fracked gas, coal, and other fossil fuels. However, pressure from major tech customers is driving gradual changes.

The Path Forward: Diversified Energy Strategy

The AI revolution has fundamentally changed the energy equation for cloud computing. While renewable energy investments continue to grow at a record pace, the geopolitical competition over AI capabilities and megaprojects, such as the $500 billion U.S. Stargate initiative or France’s €109 billion investment in data centers, will require at least 5 GW in new generation capacity. The energy imperative has led to a more pragmatic approach where companies are pursuing multiple energy sources simultaneously. Technology companies like Microsoft, Google, Amazon, and Meta hope nuclear power will offer a climate solution for this energy use. Nuclear power plants can deliver hundreds of megawatts of power without producing greenhouse gas emissions, NPR reports, though long-time industry observers remain skeptical about execution timelines.

Customer Power and Future Outlook

As each of us makes choices about which technologies to use and how much to rely on AI in our work and life, we must make our preferences known to the major tech platform companies. As Gary Cook of Greenpeace emphasized when he discussed advocacy efforts with Earth911, “IT companies care about what their customers think. Companies need to hear from customers demanding that they care about climate change and to fuel their operations with renewable energy.”

The scale of AI’s energy demands has created a new reality where companies are pursuing all available zero-carbon options, including controversial nuclear power, alongside massive renewable energy investments. It remains to be seen if we are rushing into new environmental crises. The Department of Energy is actively assessing center energy demand to help guide policy responses to this unprecedented challenge, which will create an opportunity for public comment.

The next few years will be critical in determining whether the technology sector can scale clean energy fast enough to meet AI’s exponential growth in energy demands while maintaining progress toward global climate goals. But consumers are not powerless spectators in this process—they have direct influence.

One example is the work of Consumers International, which leads the Clean Energy Futures program; it is designed to empower ordinary people to participate in the clean energy transition. Their recently launched Impact Initiative: Amplifying Consumer Voices in the Clean Energy Transition highlights grassroots actions—such as community campaigns, school-led initiatives, and public petitions—that have successfully pressured policymakers and companies to adopt cleaner practices.

You can get involved by reading Consumers International’s Maximising consumer voices in digital financial services policy-making report to explore how others are having an impact in the data center electricity debate. Then, take action through local campaigns, sign petitions, or partner with consumer organizations to push for renewable energy adoption.

Editor’s note: Originally published on June 29, 2018, this article was substantially updated in September 2025.