By 2028, U.S. data centers could consume up to 12% of the nation’s electricity, nearly triple today’s usage. With tech giants like Amazon, Google, and Microsoft expanding data centers at record speed, the pressure on our energy infrastructure is skyrocketing. So how do we power AI sustainably? In this bi-weekly newsletter series, our energy consultant Jasmine dives into the world of clean energy—exploring everything from energy storage systems to electric vehicles, battery tech, and future mobility. (Take a look at our Energy industry page for the latest updates.)

 

 

In this edition, we explore one of the most pressing challenges in clean energy—the surging energy demands of generative AI and data centers. As AI adoption accelerates, the infrastructure supporting it is consuming unprecedented amounts of power, placing immense strain on the grid and intensifying the need for sustainable solutions.

 

The AI Boom and its Energy demands

Generative AI is reshaping industries, driving innovation, and transforming business operations. But behind the scenes, the data centers powering AI models are experiencing an extraordinary surge in energy consumption. In 2023, U.S. data centers accounted for approximately 4.4% of the nation’s electricity use. By 2028, estimates project that number could rise to between 6.7% and 12%. On a global scale, AI-driven workloads could make up as much as 20% of total data center power consumption by the end of the decade.

Tech giants like Amazon, Google, and Microsoft are aggressively expanding their data center operations, fuelling demand for reliable and sustainable power sources. Meanwhile, traditional energy grids are struggling to keep pace, prompting an urgent need for clean energy solutions, including energy storage systems (ESS) and alternative power sources.

With AI driving exponential energy consumption, clean energy is stepping in as a critical solution. One of the most promising advancements is the integration of Battery Energy Storage Systems (BESS) to provide stable and efficient power to data centers.

Companies like Natron Energy are pioneering sodium-ion battery technology, offering a more sustainable alternative to traditional lithium-ion batteries. Their BlueTray4000™ battery is already being deployed in collaboration with Forced Physics and H5 Data Centers, ensuring uninterrupted power and reducing reliance on fossil fuels.

Beyond Natron Energy, other key players include:

  • Energy Vault & RackScale – Partnering to develop 2 GW/20 GWh of battery storage for data centers.
  • EnerSys – Specializing in high-performance battery systems for critical power applications.
  • Fluence – Developing advanced BESS solutions to improve grid stability and enhance renewable energy integration.
  • Form Energy – Innovating with iron-air batteries designed for long-duration energy storage, potentially transforming data center resilience.

 

ai data center

 

Alternative Energy Sources: The Case for Nuclear and Beyond

While BESS plays a crucial role, it’s not the only solution. Given the intermittent nature of renewables like solar and wind, some companies are turning to nuclear power—particularly Small Modular Reactors (SMRs)—as a consistent and low-carbon alternative for data centers.

  • Brookfield Asset Management is investing up to €20 billion in AI-driven infrastructure in France, with clean energy integration as a focal point.
  • TerraPower, backed by Bill Gates, is developing next-generation nuclear reactors that could support large-scale AI infrastructure.
  • NuScale Power is advancing SMR technology, offering scalable, low-emission power solutions tailored for data center energy needs.

Additionally, some utilities are exploring natural gas as a bridge solution, though concerns about carbon emissions and sustainability remain a challenge.

 

The Road Ahead: What this means for 2025 and beyond

The International Energy Agency (IEA) forecasts a nearly 4% annual increase in global electricity demand through 2027, largely driven by AI and data centers. This shift presents both challenges and opportunities for the clean energy sector:

  • Investment in ESS – Expect increased funding and R&D in battery storage technologies like sodium-ion, iron-air, and gravity-based storage.
  • Job Market Growth – High demand for professionals in advanced manufacturing, power electronics, and grid optimization.
  • Policy & Regulation – Governments will need to accelerate clean energy incentives and infrastructure investments to support AI expansion sustainably.

 

How You Can Get Involved

The AI-energy challenge is reshaping hiring trends in clean tech and advanced manufacturing. Key areas of demand include:

  • Advanced Battery R&D – Engineers specializing in sodium-ion, solid-state, and grid-scale battery technology.
  • Power Electronics & Energy Systems – Experts in DC fast-charging, high-voltage inverters, and grid integration.
  • Policy & Regulatory Specialists – Professionals navigating data center energy regulations and clean energy incentives.

For those in clean energy, advanced manufacturing, and power systems, this evolving landscape presents significant career and business opportunities:

  • Hiring & Talent – If you need specialists in power electronics, battery technology, or energy storage, I can help connect you with top experts in the field.
  • Industry Insights – Follow companies like Natron Energy, Energy Vault, and Brookfield Asset Management to stay ahead of the latest developments.
  • Sustainable Innovation – Whether you’re involved in energy policy, grid management, or R&D, now is the time to align with the AI-driven clean energy transformation.

 

Final Thoughts

AI is here to stay, and so is its insatiable demand for power. The clean energy sector must rise to the challenge, ensuring that the digital revolution is powered sustainably. The future of AI isn’t just about smarter algorithms—it’s about smarter energy solutions.

Are you working on energy storage or clean power solutions for data centers? Let’s connect and discuss how we can drive this transformation together.

 

 

As a specialist in battery, data center, energy management, HVAC, clean tech and building automation recruitment, CrimsonXT connects specialised talent to your organisation. Ready to talk to a recruiter to learn more about our services? Maybe you’d like to discuss a vacancy? Get in touch here. Or, learn more about our jobs.