The future of AI is even more fossil fuels

A collaboration of major tech companies has unveiled the “Stargate” project this week, announcing a $500 billion investment for US-based artificial intelligence infrastructure. Led by OpenAI, Oracle, and SoftBank, the initiative aims to rapidly expand the development of new data centers crucial for future AI advancements. It also includes plans to establish new electricity plants to support the energy needs of these AI models known for their high energy consumption.

President Donald Trump has expressed support for Stargate, aligning with his plans to boost the US fossil fuel industry. Looser regulations on oil and gas extraction are expected to make fossil fuels the preferred and cost-effective choice for powering Stargate’s ambitious AI projects. This shift may lead American AI companies, some of which have committed to green energy sources, to rely more heavily on fossil fuels during the next administration.

What is Stargate?

During a recent press conference, President Trump discussed the potential impact of Stargate alongside key figures behind the project, including Larry Ellison of Oracle, Sam Altman of OpenAI, and Masayoshi Son of SoftBank. Stargate aims to secure $500 billion in funding to establish new data centers in the US to power AI developments. SoftBank is the primary investor, with OpenAI overseeing the project’s operations. Despite skepticism from critics like Elon Musk, the partners claim to have already allocated $100 billion for the initial phase in Texas, with expectations to create numerous jobs and solidify American leadership in AI.

“I believe this project will be a defining initiative of our time,” stated Altman during the press conference. “Your support, Mr. President, has been instrumental in making this possible.”

The urgency for AI firms to expand and enhance their capabilities is driving the need for more data and server storage in energy-intensive data centers. Projections suggest that these centers could consume 8% of total US electricity by 2026, significantly higher than the 3% recorded in 2022. With the backing of President Trump, the demand for data centers and electricity to power AI projects is expected to rise even further.

AI’s insatiable energy appetite

The rise of generative AI technologies has led to a surge in electricity consumption. Researchers estimate that even simple AI queries can consume as much energy as powering a lightbulb for 20 minutes, with larger language models requiring ten times more energy than a basic Google search. The creation of AI-generated content like images and videos also demands significant electricity, contributing to the growing energy needs of AI firms.

Despite commitments to renewable energy goals, major tech companies are currently relying on coal and natural gas to meet the increasing electricity demands of AI. Reports indicate a substantial rise in greenhouse gas emissions from companies integrating AI into their products. This trend, fueled by the AI race, is driving unprecedented power demands and environmental concerns.

Nuclear and green energy investments won’t cut it

Efforts to transition to renewable energy sources like wind and solar, as well as investments in nuclear power plants, are underway to offset the use of fossil fuels in powering AI projects. However, the immediate energy needs of AI development outpace the readiness of these alternative energy sources. Experts suggest that fossil fuels, despite their environmental impact, remain the most viable solution to meet the rapid energy demands of AI initiatives.

“The world is not prepared for the impending surge in AI energy demand,” remarked Jamie Beard of Project InnerSpace, emphasizing the urgency for sustainable energy solutions.

Trump’s message to AI: ‘Drill baby drill’

The new Trump administration’s focus on deregulating the energy sector is expected to facilitate the use of fossil fuels to power data centers. President Trump’s recent actions to roll back climate pledges signal a shift towards prioritizing fossil fuel energy sources to support AI developments.

Trump has moved quickly to lift restrictions on drilling for oil in Alaska, relax auto emissions standards, and expedite approvals for exporting liquefied natural gas. Despite legal challenges, experts believe Trump may use an energy “emergency” to speed up permits for fossil fuel infrastructure, potentially boosting energy supply and reducing costs for data center owners. Trump’s goal, as stated during his inauguration, is to revitalize the US energy sector, even as some analysts warn of a possible oversupply of oil and natural gas.

“We will drill, baby, drill,” Trump declared in his inaugural address. “We will be a rich nation again, and it is the liquid gold under our feet that will help us do it.”

For data center owners and AI companies seeking affordable and accessible electricity, these developments are likely seen as positive. While the Stargate Project has not disclosed its energy sources, the project’s ties to the Trump administration and its ambitious infrastructure plans suggest a reliance on fossil fuels. Major tech companies like Oracle, OpenAI, and SoftBank have not provided comments on the matter. Trump, in discussions with Stargate executives, promised to facilitate electricity generation for these companies, even proposing on-site energy production at new “AI plants.”

“They have to produce a lot of electricity and we will make it possible for them to get that production done very easily, at their own plants if they want,” Trump assured. “At the AI plant they will build energy generation and that will be incredible.” The feasibility of integrating energy operations within an AI data center remains uncertain.

The surge in fossil fuel-powered American AI companies poses a threat of increased CO2 emissions, higher global temperatures, and a setback in recent climate progress. Some proponents of AI argue that this temporary environmental impact may be justified to advance a technology capable of combating severe climate change consequences. AI models are already aiding in enhancing energy efficiency, air pollution monitoring, and identifying critical mineral-rich areas for eco-friendly product manufacturing. However, the potential environmental harm from increased emissions could exacerbate natural disasters like hurricanes and wildfires, casting doubt on the wisdom of relying heavily on AI for energy solutions.