Why clean energy isn’t optional in the age of AI

Artificial intelligence and the data centers powering it are straining energy demand at an unprecedented pace. The North American Electric Reliability Corporation (NERC) has identified AI-related data center growth as one of the biggest short-term threats to U.S. power reliability. In 2023, data centers used 4.4% of all U.S. electricity. By 2028, this could jump to 12%, according to the Department of Energy.

In an era of grid constraints, outages, and rising energy demand, more energy must come online than ever before. That’s why Innovo is building the digital infrastructure for energy commodities. It's enabling faster, more transparent, and compliant connectivity across all market participants.

How much global energy will AI and data centers use?

By 2030, AI and data centers may account for up to 4% of global electricity demand, according to the International Energy Agency (IEA). That’s more than some industrial sectors consume today. It’s unfolding now as companies deploy compute-heavy models and infrastructure at scale.

The U.S. power grid is aging and underfunded. While studies suggest we need to invest $2 trillion by 2030 to modernize it, current spending is only about $400 billion a year. That’s a massive gap. Without intervention, the grid will struggle to handle surging demand, especially from AI expansion.

A slow grid upgrade could delay AI development, destabilize power systems, and raise electricity prices. Without a reliable supply, even the best data centers will face constraints, threatening innovation, economic competitiveness, and energy reliability. 

What’s the fastest way to add grid capacity?

Clean energy, especially solar, wind, and batteries, are the fastest and most cost-effective way to meet rising demand. Renewable installations are quicker to deploy than traditional power plants and offer long-term price stability due to their resiliency against market shocks. 

The 2024 World Energy Investment report projects $2.2 trillion in global renewable investment, more than double the amount flowing into fossil fuels. Solar alone is attracting $450 billion, surpassing investment in coal and gas combined.

Why are renewables gaining traction?

Renewables offer four advantages:

• Speed: They’re the quickest energy sources to deploy, able to be brought online faster than fossil-based plants. 
• Stability: Renewable electricity isn’t tied to global oil prices, avoiding price fluctuation like oil or gas.
• Security: Distributed generation reduces reliance on centralized infrastructure, strengthening the grid with localized generation. 
• Scalability: Solar plus battery storage is now cheaper than even running old coal plants.

Could renewables supply most of our power?

They likely will. The United Nations estimates that renewables could generate 65% of the world’s electricity by 2030 and 90% of power sector decarbonization by 2050. These aren’t optimistic guesses, they’re based on real deployment trends. The trajectory is clear: clean energy is not optional, it’s the new baseline.

Grid-scale battery storage is becoming critical. NERC reports highlight their growing importance in helping balance demand from AI and other intensive loads. While modeling needs to improve, batteries are already reducing outages and supporting peak loads.

What are companies and states doing about this?

Major players are committing to clean energy at record speed. Amazon, Microsoft, Walmart, Boeing, and others are ramping up renewable procurement, not just to meet sustainability goals but to reduce costs and manage supply risk. Their energy strategies now depend on it. Clean energy is already lowering costs.

States and utilities are pushing forward regardless of federal delays. Many are setting their own renewable targets and investing in infrastructure upgrades. This decentralized momentum is keeping the clean energy buildout alive and accelerating.

Are we past the point of no return?

In a word, yes. The market has already chosen clean energy. The direction is clear in both spending and performance metrics. Even if federal incentives fade, adoption won’t stop. The transition is already baked into long-term investment strategies. The energy transition is no longer if, but how fast.

Why did we build a platform around this?

Speed matters more than ever. In a world where AI needs reliable power and clean energy is the most viable solution, stakeholders must act fast. That’s why we built Innovo, a platform to help developers, corporates, and financiers transact RECs and other environmental assets quickly, securely, and cost-effectively. As AI strains grid systems, getting clean power online quickly becomes a business-critical advantage.