Meeting AI’s energy demand with clean, secure and affordable power

As the impact of artificial intelligence (AI) on energy continues to hit the headlines, the industry conversation is evolving beyond just asking how to meet its appetite for power.

This was evident at CERAWeek 2025, held in Houston, Texas, against a backdrop of surging energy demand in the host country, in large part due to the rapid expansion of data centers as AI use grows.

The question now on the industry’s lips, according to attendee Bill Newsom, President and CEO of Mitsubishi Power Americas, is: “How do we meet the challenges of electricity demand growth and still chart an economically viable path to decarbonization?”

AI’s energy needs

Globally, over the next three years, electricity consumption will rise by an unprecedented 3,500 terawatt hours (TWh), according to International Energy Agency (IEA) forecasts. Alongside data centers, this growth is fueled by industrial production, the rising use of air conditioning and accelerating electrification. 

In the US, which according to the World Resources Institute (WRI) “needs more electricity than ever”, the demand spike could increase emissions, cost consumers more and make the grid less reliable if left unaddressed. 

The challenge is compounded by policy shifts causing uncertainty around the energy transition and geopolitical tensions putting energy security firmly back on national agendas.

Utilities and energy providers are having to rethink how they deliver reliable power quickly and sustainably, Newsom says.

Nuclear energy to power AI

The industry is increasingly recognizing that meeting demand is a delicate balancing act between ensuring clean, secure and affordable energy. And there is no single solution, the WRI notes, but a “menu of options to choose from”.

At CERAWeek, two such options — nuclear and geothermal power — were the topic of multiple discussions, observed Takajiro Ishikawa, President & CEO at Mitsubishi Heavy Industries America. “These are two areas we’ll see a lot of movement in 2025 and beyond as we look to meet the increasing energy demand from various sources,” he said in a blog post after the event.

On the conference sidelines, big tech firms Amazon, Google, Meta and others recognized the role of nuclear for reliable power and energy security by signing a pledge to support the goal of at least tripling the world’s nuclear capacity by 2050.

But with data center demand projected to triple in the US within the next three years, consuming 12% of the nation’s entire power supply, what happens in the short term?

Meeting global energy demand today

At a panel called ‘System Reliability: The Challenges of Risk and Demand’, delegates discussed gas-fired power generation as a near-term solution to meet demand. This would be through a mix of gas turbine combined cycle power plants (GTCC), which offer high generation efficiency while reducing CO₂ emission by about 65% compared to traditional coal plants, and peaker plants to ensure grid reliability during peak periods. 

Hydrogen blending and CO₂ capture, utilization and storage, which can capture more than 90% of the CO₂ from GTCC plants, were seen as promising routes to further decarbonization. 

The future of the energy transition

While the conversation around the green transition may be evolving, MHI delegates came away from CERAWeek optimistic about the path ahead.

“Despite the current uncertainty, deep emission reduction as a long-term trend will continue,” says Mike Fowler, Vice President, Engineered Systems Division, Mitsubishi Heavy Industries America, reflecting on his discussions at the event. “We’re still seeing high demand for clean energy, with several projects set to cross the finish line in the next few years and market dynamics creating new opportunities.”

For Newsom, creating more of these opportunities will require a careful combination of technology, economics and regulation working together. Cross-industry partnerships are already helping to achieve this, accelerating innovation and managing rising demand. And he suggests that reframing the issue could drive further advances.

“One term that I keep hearing is the ‘energy trilemma’ but I see it as an ‘energy trifecta’,” he says. “Every challenge is an opportunity, and we as an industry are inherently optimistic, always striving to advance in the best ways possible. Our goal is to lead the energy transition with innovative and reliable solutions.”