Electrification could be the key to net zero. And AI can boost the transition

The energy landscape is undergoing a profound transformation. The urgent need to decarbonize and the relentless pursuit of energy efficiency have ignited a worldwide movement towards a more sustainable future. At Schneider Electric, driven by our purpose to empower people to use energy and resources responsibly, and our mission to be a trusted partner for sustainability and efficiency, we believe that the key to unlocking this future lies in the power of electrification, digitalization, and automation. But it is human ingenuity that will truly drive this transformation and shape a brighter future for all.

What if we could electrify the world in a way that drastically cuts greenhouse gas (GHG) emissions? What if artificial intelligence (AI) could optimize energy use, so it could become our ally in the fight against climate change? What if the data centres powering AI, and our increasingly digital lives, could operate and scale up without leaving a massive carbon footprint? These aren’t hypotheticals. They are questions begging for answers. We can’t assume there’s time to spare gambling with our planet’s future.

Electricity, the most versatile and efficient form of energy, is at the heart of our vision. By electrifying across sectors, industries and communities, we can dramatically reduce GHG emissions. The International Energy Agency (IEA) reports that by 2050, electrification could account for up to 60% of the total reductions needed to achieve net-zero emissions.

Digital technologies, like the internet of things and AI, are revolutionizing the energy industry, just as they are transforming the way we live and work. They offer tools to optimize consumption, transform power grids, and seamlessly integrate renewable energy sources. AI can sift through mountains of data to uncover patterns we couldn’t detect on our own, enabling smarter decisions and fostering sustainable business practices.

Energy companies can harness the power of data by collecting and analyzing information from across their value chains. The AI revolution presents a tremendous opportunity for growth and innovation, projecting a 14% increase in the global economy by 2030, driven by enhanced labour productivity and product enhancements through AI, with a projected market cap of $1.3 trillion by 2032.

But there’s a paradox at the heart of the AI revolution: The very technology we rely on for data-driven solutions is driving unprecedented demand for energy-intensive data centres. Our challenge is to scale these operations sustainably. Traditional data centres weren’t designed to handle the high-density AI workloads of today. AI workloads can increase power demands significantly, putting immense strain on cooling systems. Advanced cooling technologies, like direct-to-chip and immersion cooling, are emerging to address this challenge.

However, cooling technologies are just pieces of a larger puzzle. Data centres currently account for about 1.5% to 2% of global electricity consumption, a figure that could more than double by 2030 without energy-efficient practices. To curb the substantial environmental impact of accelerated data centre build, we must decouple the growth from energy consumption right from the start. This can be achieved through a multifaceted approach: We must optimize energy usage, leverage renewable energy sources, and design energy-efficient facilities at the forefront. Additionally, retrofitting existing data centres and strategically locating them in regions with abundant renewable energy can make a big difference.

Looking ahead, with emerging technologies like quantum computing on the horizon, designing scalable and modular data centre infrastructure will be essential. By prioritizing energy efficiency, advanced cooling and strategic planning, we can ensure that data centres power innovation while minimizing their environmental footprint.

But let’s step back for a moment. While technology is a powerful tool, it is human ingenuity that wields them effectively, driving innovation and progress. The true value of AI comes to life when technology meets human expertise. Successful AI requires more than data science; it must be business-oriented and responsible.

Domain expertise is essential for successful AI implementation. It plays a key role in selecting features, models, training and perfecting AI models, and ensuring the creation of ethical, unbiased algorithms. It is also key to ensuring explainability and safe implementation of AI solutions.

As AI and automation advance, we face ethical questions that can’t be ignored. We must ensure that AI is used responsibly, with a focus on human well-being. By following the highest ethical standards when implementing AI and automation, we can harness the power of technology and contribute to a more sustainable future. Remember, the future of AI depends on how we, as humans, leverage it to solve real-world problems and improve lives.

So, what’s the best way to safeguard our planet and ensure a sustainable future? Embracing a circular economy – a system where resources are reused and regenerated – is imperative. Circularity offers dual benefits for the planet and the economy. With 45% of global emissions associated with the production and consumption of products, the current rate of resource consumption is unsustainable. Circular transformation is highly effective because it keeps materials in use, and energy embodied, for as long as possible.

A circular economy requires access to reliable energy for all. Schneider Electric is committed to Access to Energy initiatives, having already improved the lives of over 46 million people. We aim to reach 100 million people by 2030 through sustainable energy solutions. Our innovative solutions, powered by the latest technologies, enable businesses to optimize energy consumption, reduce carbon emissions, and improve operational efficiency. By combining technology with human expertise, we can unlock the full potential of digital transformation and accelerate the transition to a sustainable future.

To achieve a net-zero future, we must focus on both the supply and demand sides of energy. By electrifying our economies and optimizing energy consumption, we can significantly reduce global emissions. This means transitioning to renewable energy sources, electrifying transportation and industries, and implementing energy-efficient practices. By embracing innovation, electrification, and circularity, as well as investing in clean energy solutions, we can collectively mitigate climate change and ensure a better future for generations to come.