How much of the AI data center boom will be powered by renewable energy?

The article discusses the rapid growth of AI data centers and their significant power demands, highlighting that global spending on data centers is projected to reach $580 billion this year—surpassing investments in new oil exploration by $40 billion. This shift underscores the evolving global economy and raises concerns about the strain on electrical grids, especially as many data centers are planned near large urban populations. The majority of electricity demand from these centers is expected to come from the U.S., with China and Europe also contributing substantially. The article emphasizes that renewable energy adoption will likely be driven more by business considerations than environmental policies. A key potential positive noted is the opportunity for innovation in renewable energy and data center design, with companies like Redwood Materials launching initiatives such as Redwood Energy to create microgrids powered by repurposed EV batteries specifically for AI data centers. This approach could help mitigate grid stress, particularly in regions prone to power shortages like Texas. However, questions remain about how many planned data centers will actually be built given the enormous