AI Revolution Drives Higher Demands for Natural Gases, Fossil Fuels

The AI boom is powering more than digital services and platforms, it is also contributing to higher revenues in natural gases and fossil fuels, the Financial Times reported.

Several gas producer executives told FT that the AI boom is boosting demands for fossil fuels to power multiple data centers needed to operate its large language machines and cloud servers.

Many AI firms remain reliant on non-renewable energy sources for their operations as the amount of constant electricity needed is a difficult feat to achieve for renewable energies for now.

OpenAI's ChatGPT, which has over 100 million weekly users, reportedly consumes 17,000 more energy than average US household.

AI Data Centers Ramping Up Electricity Consumption

With more AI startups popping up since it went viral last year, more fossil fuels are reportedly being used that the US Energy Information Administration predicts that the US will soon reach its record-high electric consumption either this year or the next.

The EIA projected that the power demand will grow to 4,112 kilowatt-hours before the year ends, several levels higher than the previous year's 3,994 billion kWh.

This also means that more fossil fuels are being burned and contributing to the worsening climate conditions in the country with more polluted atmosphere and extreme weather events.

US Govt' Offers Incentives to AI Firms to Become Green

To mitigate the damages to the environment, the US government has started expanding its incentives towards AI companies to lessen the consumption of fossil fuels.

The White House has already released several cash injections to clean energy developers to speed up in transitioning major sectors of the country towards green energy, lowering the annual carbon consumption.

As of writing, only a few tech companies have promised to slash their greenhouse gas emissions amid backlash for climate experts that ramp-up on AI is undermining earlier commitments to protect the environment.

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