As emissions soar, Google and Microsoft turn to geothermal and nuclear power solutions.

  • Tech giants are seeking clean energy sources to power AI data centers.
  • Google is partnering with utilities for geothermal energy in Nevada and the Carolinas.
  • Data centers’ electricity consumption is projected to grow significantly, impacting emissions.
  • Tech companies are the largest purchasers of wind and solar power but need more reliable sources.
  • Microsoft and Amazon are investing in nuclear energy to meet their power needs.
  • Carbon emissions from tech companies have surged despite previous climate pledges.
  • New technologies like long-duration batteries and carbon removal efforts are being explored.

In recent years, major tech companies have made bold promises to reduce their carbon emissions. However, the rapid expansion of artificial intelligence (AI) has led to a surge in energy consumption, putting these climate commitments at risk. To address this, companies like Google and Microsoft are now actively seeking clean energy sources to power their AI data centers. nnIn Nevada, Google is collaborating with a utility to harness geothermal energy, tapping into the heat beneath the earth’s surface. Similarly, in the Carolinas, Google, Amazon, and Microsoft are working with Duke Energy to explore new energy arrangements that could include advanced technologies like small nuclear reactors. nnThe demand for energy is staggering; a single search on a generative AI platform can consume ten times more energy than a standard search. Projections indicate that emissions from the global expansion of data centers could account for nearly 40% of the annual emissions of the entire U.S. economy by 2030. This rising demand is prolonging the life of fossil-fuel power plants and hindering U.S. climate progress. nnDespite being the largest buyers of wind and solar power, tech companies are struggling to meet the continuous energy demands of their data centers. For instance, Meta Platforms reported a 70% increase in emissions last year compared to 2019, while Microsoft and Google also saw significant rises. nnIn Nevada, a new rate structure is being proposed where a utility would purchase geothermal energy from a startup, allowing Google to secure green energy for its data centers while stabilizing electricity costs. Similar initiatives are being discussed in the Carolinas, where tech companies would pay higher rates to support the development of small nuclear reactors and long-duration power storage. nnAs tech companies explore new energy solutions, they are also investing in carbon removal technologies to offset their emissions. Google has committed to funding carbon removal efforts equivalent to the emissions of 22,000 gas-powered cars, while Microsoft is the largest buyer of carbon removal credits. nnWhile AI may eventually help optimize energy use, experts warn that the current surge in emissions may outweigh any potential productivity gains. The race for clean energy is on, and tech giants are determined to find sustainable solutions to power their future.·

Factuality Level: 7
Factuality Justification: The article provides a detailed overview of the tech industry’s efforts to address carbon emissions amid rising energy demands from AI data centers. While it presents factual information and relevant examples, it occasionally leans towards sensationalism by emphasizing the ‘desperation’ of tech companies and includes some speculative statements about future energy solutions. Overall, it maintains a reasonable level of factual accuracy but could benefit from a more balanced tone.·
Noise Level: 8
Noise Justification: The article provides a detailed analysis of the tech industry’s impact on climate goals, highlighting specific partnerships and technologies being pursued to address energy needs. It holds companies accountable for their emissions and discusses the consequences of their actions. The article is well-supported by data and examples, staying on topic without irrelevant information.·
Public Companies: Google (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Duke Energy (DUK), Meta Platforms (META), Berkshire Hathaway (BRK.A), Constellation Energy (CEG), Nucor (NUE), Oracle (ORCL), Occidental Petroleum (OXY)
Private Companies: Fervo Energy,Holocene,Arbor
Key People: Lon Huber (Senior Vice President of Pricing and Customer Solutions at Duke Energy), Amanda Peterson Corio (Global Head of Data Center Energy at Google), Larry Ellison (Executive Chairman at Oracle), Gernot Wagner (Climate Economist at Columbia Business School)

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Financial Relevance: Yes
Financial Markets Impacted: The article discusses tech companies’ investments in clean energy and nuclear power, which could impact their operational costs and market valuations.
Financial Rating Justification: The article highlights the financial implications of tech companies’ energy strategies and their partnerships with utility companies, directly affecting their financial performance and market dynamics.·
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses the tech industry’s challenges in meeting climate goals and their efforts to source clean energy, but it does not report on any extreme event that occurred in the last 48 hours.·
Deal Size: 1600000000
Move Size: No market move size mentioned.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.wsj.com