Could AI be the Answer to Spiralling Energy Demands?

As AI continues to reshape industries, energy consumption is fast becoming critical concern.

The Energy Technology Coalition could represent a turning point in how AI-enabled solutions address the very energy challenges that AI itself creates.

Co-chaired by Schneider Electric and Bloomberg New Energy, the coalition brings together global decision makers to explore how AI and emerging technologies can optimise energy use while improving power grid responsiveness.

It focuses on accelerating the deployment of demand-side technologies, including AI-enabled grid management, digital twins and industrial automation systems.

AI's dual role in energy infrastructure

AI occupies a unique position in the current energy landscape. According to Bloomberg New Energy's New Energy Outlook 2025, electricity demand is forecast to grow 34 % in the next 10 years and 75 % by 2050, with AI and computing demands representing a significant portion of this surge.

The invitation-only Coalition functions as a working group designed to help companies, cities and countries navigate this complex terrain. It aims to identify where and why the deployment of AI-driven demand-side technologies has been slow, whilst evaluating what is working and what factors are being overlooked in the energy transition.

Olivier Blum, CEO of Schneider Electric, says: "Every conversation about AI eventually leads back to energy – not how much we need, but how wisely we use it.

"The more energy is demanded from our grid, the more important energy technology becomes. When energy is made to be more intelligent, we can make practical improvements in how it is managed. Buildings consume less electricity, microgrids create more resilience, digital twins visualise richer data for superior pre-construction planning."

Making energy demand smarter

The coalition's approach centres on making demand "smarter" through combining efficiency with flexibility. This involves leveraging AI and digital technologies to enable the integration of more energy sources, including clean power.

Frédéric Godemel, Executive Vice President, Energy Management at Schneider Electric, says: "Building a resilient and affordable energy future requires strong collaboration across the technology and energy sectors.

"By working together and leveraging innovations like AI and digital twins, we can strengthen the grid, improve reliability and make energy more accessible and cost-effective for everyone."

The world's electricity grids must accommodate loads from electric vehicles, industrial electrification, digitalisation and the rise in AI use. Emerging markets are expanding access and adding new demand in areas where more than one billion people still lack reliable access to power.

The integration of these technologies requires careful planning and coordination across multiple sectors. Energy providers, technology companies and policymakers must work in tandem to ensure infrastructure can support the transition whilst maintaining stability and affordability.

Coordinated action for AI's energy future

Karen Saltser, CEO of Bloomberg Media, highlights a "critical moment" where digital infrastructure and energy systems are converging at an accelerating pace.

She continues: "It's clear the world would benefit from coordinated action to ensure that surging AI and compute demands are met with clean, resilient and efficient energy for generations to come."

The transformation required to meet global energy demand presents both a significant challenge and a notable economic opportunity. By bringing together leaders from across energy, technology and infrastructure sectors, the Coalition could help catalyse new innovations, partnerships and policies needed to power AI responsibly.

Frédéric adds: "Schneider Electric is committed to partnering with industry leaders to deliver solutions that support economic growth and ensure our energy infrastructure can meet the demands of tomorrow, which is why we're excited to play a part in this new coalition."

According to Bloomberg New Energy, meeting energy demand with a clean energy supply will be challenging. The solution could lie in encouraging the adoption of AI-enabled clean energy technologies and expanding grids to meet the rising energy demand while maintaining efficiency and resilience.