Power is the key to solving AI’s energy crisis

It’s the dynamic pulse that surges through our electrical lines, the unseen force that illuminates the dark, and the silent but commanding engine propelling the future of artificial intelligence. Though intangible, its influence is omnipresent in our daily lives. This invisible force is power. As the world shifts from fossil fuels to embrace renewable energy, power is emerging as an ultimate finite resource. The ever-growing demands on our electrical grid, driven by the explosion of data centers, electric vehicles, and the proliferation of AI are creating a race against time where needs outpace supply. Consequently, our insistence on tech innovation may be hindering efforts to combat climate change, as it forces us to continue relying on fossil fuels to meet the rising energy requirements. Power system innovation Solving this energy crisis is essential for next-generation economies to successfully adopt AI and electrification. Innovation in power systems is essential to achieving this, enabling smarter, more sustainable energy solutions. Integrating AI data centers with advanced power systems can drastically reduce energy consumption and costs while meeting growing energy demands. As AI continues to expand, power system innovation will play a crucial role in reducing its environmental impact to foster a more sustainable future.   Supporting a sustainable future by adopting energy-efficient technologies and practices has become crucial over the last decade. Customers are increasingly demanding that enterprises and their supply chains meet stringent sustainability benchmarks, underscoring the importance of these technologies and practices. From a marketing perspective, companies that work to innovate and prioritize sustainable solutions not only contribute to a greener planet but also gain a competitive edge by aligning their brand values to the values of environmentally conscious consumers and partners. In fact, Deloitte research indicates that a major shift is happening in consumption patterns, where sustainability is considered a baseline requirement for purchase rather than a “nice-to-have.” Technological progress advances AI’s surge began nearly 4 years ago, with headlines predicting its potential impact. AI has continued to evolve and its capabilities have become increasingly fine-tuned. It is now seen as a transformative force, anticipated to revolutionize global economies and industries, specifically in sectors like healthcare and manufacturing. For example, regions such as the United Kingdom are planning to leverage AI’s capabilities across its public and private sectors to cut costs and spur economic growth.  However, harnessing this advanced technology’s power brings considerable challenges, specifically in energy consumption and its environmental impact. AI’s computational requirements are increasingly energy-intensive, especially as data centers—which power all AI functions—require more power to manage the boundless amounts of data flowing in. This surge in energy demand strains the electrical grid, creating a tipping point for power that risks progress made over the last decade in reducing our carbon footprint.   As we look toward the future, energy efficiency is the key to ensuring that this technological progress doesn’t advance at the expense of our environment. Power system innovation, for example, can significantly reduce energy consumption and operational costs while still meeting the growing AI demands. Additionally, integrating renewable energy sources and improving energy management systems can help mitigate AI’s overall environmental impact. The sustainable path forward We stand at a pivotal moment where innovation and collaboration are essential to improving efficiency through new technologies, all while maintaining a strong focus on the common sustainability theme. To overcome today’s challenges and achieve a sustainable future, we must explore and cooperate across various industries. It’s crucial that we support AI’s continued growth without compromising the significant progress individuals and enterprises have made in reducing carbon emissions for more sustainable supply chains and a more sustainable world. Felicity Carson is SVP and chief marketing officer at onsemi. The Fast Company Impact Council is a private membership community of influential leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual membership dues for access to peer learning and thought leadership opportunities, events and more.

Mar 13, 2025 - 23:59
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Power is the key to solving AI’s energy crisis

It’s the dynamic pulse that surges through our electrical lines, the unseen force that illuminates the dark, and the silent but commanding engine propelling the future of artificial intelligence. Though intangible, its influence is omnipresent in our daily lives. This invisible force is power.

As the world shifts from fossil fuels to embrace renewable energy, power is emerging as an ultimate finite resource. The ever-growing demands on our electrical grid, driven by the explosion of data centers, electric vehicles, and the proliferation of AI are creating a race against time where needs outpace supply. Consequently, our insistence on tech innovation may be hindering efforts to combat climate change, as it forces us to continue relying on fossil fuels to meet the rising energy requirements.

Power system innovation

Solving this energy crisis is essential for next-generation economies to successfully adopt AI and electrification. Innovation in power systems is essential to achieving this, enabling smarter, more sustainable energy solutions. Integrating AI data centers with advanced power systems can drastically reduce energy consumption and costs while meeting growing energy demands. As AI continues to expand, power system innovation will play a crucial role in reducing its environmental impact to foster a more sustainable future.  

Supporting a sustainable future by adopting energy-efficient technologies and practices has become crucial over the last decade. Customers are increasingly demanding that enterprises and their supply chains meet stringent sustainability benchmarks, underscoring the importance of these technologies and practices. From a marketing perspective, companies that work to innovate and prioritize sustainable solutions not only contribute to a greener planet but also gain a competitive edge by aligning their brand values to the values of environmentally conscious consumers and partners. In fact, Deloitte research indicates that a major shift is happening in consumption patterns, where sustainability is considered a baseline requirement for purchase rather than a “nice-to-have.”

Technological progress advances

AI’s surge began nearly 4 years ago, with headlines predicting its potential impact. AI has continued to evolve and its capabilities have become increasingly fine-tuned. It is now seen as a transformative force, anticipated to revolutionize global economies and industries, specifically in sectors like healthcare and manufacturing. For example, regions such as the United Kingdom are planning to leverage AI’s capabilities across its public and private sectors to cut costs and spur economic growth. 

However, harnessing this advanced technology’s power brings considerable challenges, specifically in energy consumption and its environmental impact. AI’s computational requirements are increasingly energy-intensive, especially as data centers—which power all AI functions—require more power to manage the boundless amounts of data flowing in. This surge in energy demand strains the electrical grid, creating a tipping point for power that risks progress made over the last decade in reducing our carbon footprint.  

As we look toward the future, energy efficiency is the key to ensuring that this technological progress doesn’t advance at the expense of our environment. Power system innovation, for example, can significantly reduce energy consumption and operational costs while still meeting the growing AI demands. Additionally, integrating renewable energy sources and improving energy management systems can help mitigate AI’s overall environmental impact.

The sustainable path forward

We stand at a pivotal moment where innovation and collaboration are essential to improving efficiency through new technologies, all while maintaining a strong focus on the common sustainability theme. To overcome today’s challenges and achieve a sustainable future, we must explore and cooperate across various industries. It’s crucial that we support AI’s continued growth without compromising the significant progress individuals and enterprises have made in reducing carbon emissions for more sustainable supply chains and a more sustainable world.

Felicity Carson is SVP and chief marketing officer at onsemi.


The Fast Company Impact Council is a private membership community of influential leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual membership dues for access to peer learning and thought leadership opportunities, events and more.