The requirement to power generative AI will increase by an annual growth rate of 70% on average and will grow at the same rate till 2027. It has primarily been triggered by the steep increase in data centers where generative AI technologies are significantly adopted. The power suppliers, the regulated utilities, in particular, should answer the question about the escalating demand by introducing renewable energy storage projects. In the view of researchers at Morgan Stanley, it appears that it will be the case that good environmental outcomes will dominate the potential increase in carbon emissions caused by the use of generative AI.
Data centers, acting as powerhouses that operate for generative AI systems, are in a state of constant increase in demand. AI’s power demand in 2025 is anticipated to reach one-third of the entire power of data centers in 2022. Such a growth spurt opens up a lot of chances for investing in businesses that provide data center infrastructure like suppliers of power management systems, cooling equipment, storage hardware, and IT management tools. Moreover, developers and owners of the industrial and logistics complexes could expect a spike in the demand for spaces that could be used as sites for data centers. Energy usage will be another key issue as industries are being disrupted by generative AI, so stakeholders will be keeping a close eye on this.
