The expansion of fossil fuel use is being driven by the increasing power needs of artificial intelligence (AI) and data centers. AI requires complex and energy-intensive computations, leading to a surge in electricity demand that is straining the power grid. As a result, utilities are turning to fossil fuels, including delaying the retirement of some coal-fired plants, to meet this growing demand.
Microsoft has partnered with Helion Energy to purchase electricity from its first fusion power plant, expected to be online by 2028. This agreement supports Microsoft's goal to be carbon negative by 2030 and helps advance the development of a new clean energy source4. Fusion technology has the potential to provide abundant zero-carbon electricity, contributing to the transition toward sustainable energy.
Tech companies plan to meet soaring AI power demands by 2028 through a combination of expanding data center construction, investing in renewable energy sources, and exploring experimental clean-energy projects such as small nuclear reactors and geothermal energy. They also aim to improve energy efficiency through technological advancements and better data center management.