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AI in green transition market to reach $115 billion by 2032

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Data centers consume huge amounts of electricity for computing, making it challenging to achieve carbon reduction goals. However, there are also many successful cases of AI-enabled carbon reduction and energy transition.

According to Precedence Research, the market size of AI applications in the renewable energy sector is expected to approach USD 11.5 billion by 2032, attracting significant investment.

AI reduces its own emissions while boosting renewable energy demand

Data centers will lead to a 6% increase in global electricity consumption, much higher than the current estimate of 2%, said Bill Gates in a recent interview with Bloomberg TV, adding that AI will improve the energy efficiency of data centers, as the tech industry will be willing to pay more for green electricity, contributing to the development of green technologies.

According to a report by Precedence Research in October 2023, the global AI in renewable energy market reached USD 10 billion in 2022, focusing on increasing power generation; regionally, the Asia-Pacific region holds the highest share, as surging electricity demand is driving the growth of AI applications in renewable energy.

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