AI Data Center Growth Widens Global Energy, Climate Divide

The rapid growth of AI and data centers is significantly increasing global energy demands, posing a major challenge for climate and energy policy, especially in developing countries. Malaysia and other Southeast Asian nations are heavily investing in data centers to boost their economies, but this growth risks locking them into fossil-fuel reliance due to insufficient clean energy infrastructure plans. Similarly, the U.K. faces tension between expanding its AI data center capacity and meeting climate commitments, with policymakers considering interim fossil fuel use to overcome energy grid constraints. In Australia, stakeholders emphasize accelerating clean energy deployment and ensuring policy certainty to support AI-driven data center growth sustainably. Beyond energy consumption, AI algorithms also drive indirect carbon emissions by promoting high-carbon consumer behaviors, underscoring the need for AI design reforms focused on emissions reduction. These developments highlight a widening energy and climate divide between the Global North and South, with urgent calls for integrated strategies that balance technological advancement with environmental sustainability.