One source of power that does score highly is nuclear, as it provides stable, carbon-free electricity that also reduces overall decarbonisation costs: by reducing the over-procurement of renewables; by limiting the need for batteries and storage associated with solar and wind; and by creating extra benefits, such as the production of hydrogen.
Small modular reactors (SMRs) – facilities that have about one-third the generating capacity of a traditional reactor – are in sharp focus, as they are relatively quick and cheap to build and enable on-site generation that can bypass the regulated utility process. Amazon said in October 2024 that it had bought a stake in nuclear developer X-energy, as part of a collaboration4 with the company aimed at deploying SMRs to provide low-carbon electricity to power its data centres.
Geothermal energy, too, is gaining traction. Microsoft, flanked by Abu Dhabi-based AI company G42, is investing in a data centre powered by geothermal energy in Olkaria, Kenya5, and has also signed a geothermal PPA in Aotearoa, New Zealand6.
Ultimately, the balancing act between achieving emissions targets, while allowing responsible AI technology to advance, is a global challenge. Policymakers, tech companies and the energy industry must forge new partnerships to deliver AI that is socially beneficial and environmentally sustainable.