Bill Gates argues that artificial intelligence will assist, not hinder, in achieving climate goals, despite concerns about new data centers depleting green energy supplies.

The philanthropist and Microsoft co-founder stated that AI could enhance technology and power grids’ efficiency, enabling countries to reduce energy consumption even with the need for more data centers.

Gates reassured that AI’s impact on the climate is manageable, contrary to fears that AI advancements might lead to increased energy demand and reliance on fossil fuels.

“Let’s not exaggerate this,” Gates emphasized. “Data centers contribute an additional 6% in energy demand at most. But it’s likely around 2% to 2.5%. The key is whether AI can accelerate the reduction to 6% or beyond. The answer is, ‘Definitely.’

Goldman Sachs estimates that AI chatbot tool ChatGPT’s electricity consumption for processing queries is nearly ten times more than a Google search, potentially causing carbon dioxide emissions from data centers to double between 2022 and 2030.

Experts project that developed countries, which have seen energy consumption decline due to efficiency, could experience up to a 10% rise in electricity demand from the growth of AI data centers.

In a conference hosted by his venture fund Breakthrough Energy, Gates told reporters in London that the additional energy demand from AI data centers is likely to be offset by investments in green electricity, as tech companies are willing to pay more for clean energy sources.

Breakthrough Energy has supported over 100 companies involved in the energy transition. Gates is heavily investing in AI through the Gates Foundation Trust, which has allocated about a third of its $77 billion assets into Microsoft.

However, Gates’ optimism about AI’s potential to reduce carbon emissions aligns with peer-reviewed papers, suggesting that generative AI could significantly lower CO2 emissions by simplifying tasks like writing and creating illustrations.

AI is already influencing emissions directly, as demonstrated by Google using deep learning techniques to reduce data center cooling costs by 40% and decrease overall electricity usage by 15% for non-IT tasks.

Despite these advancements, concerns remain about the carbon impact of AI, with Microsoft acknowledging that its indirect emissions are increasing due to building new data centers around the world.

Gates cautioned that the world could miss its 2050 climate goals by up to 15 years if the transition to green energy is delayed, hindering efforts to decarbonize polluting sectors and achieve net-zero emissions by the target year.

He expressed concerns that the required amount of green electricity may not be delivered in time for the transition, making it challenging to meet the zero emissions goal by 2050.

Gates’ warning follows a global report indicating a rise in renewable energy alongside fossil fuel consumption, suggesting that meeting climate goals requires accelerated green energy adoption.