AI boom: Demand for data centers drives innovation by energy, tech industries to produce new power sources The escalating demand for electricity, largely driven by data centers supporting AI, is pushing the energy industry to invest heavily in infrastructure and explore new power sources like fusion energy. Companies are also strategically relocating data centers to regions with abundant, affordable, and green energy, such as the Nordics, to manage costs and meet growing needs. Despite challenges like high construction costs and integration complexities, the focus remains on developing clean, safe, and abundant energy solutions.

• Data centers consumed approximately 1.5% of global electricity in 2024, with demand surging due to AI.
• Exelon is investing $1.1 trillion in infrastructure over five years to meet energy demand.
• Commonwealth Fusion Systems is developing fusion energy as a potential source of reliable, high-output power.
• Fusion energy could produce significantly more energy than it consumes, using minimal fuel.
• MIT estimates fusion might provide 10%-50% of electricity by 2100, but it will be expensive.
• Some companies are moving data centers to the Nordics for abundant, cheap, green power and cooler climates.
• Nordic countries benefit from available land, green energy, and cooler temperatures reducing cooling costs for data centers.
• Data center heat can be repurposed for heating homes in Nordic countries, creating efficient local ecosystems.
• Norway’s Arctic Circle region offers low energy prices and minimal competing industrial demand.
• The Nordics are experiencing a surge in data center builds, with significant construction costs and weather-related challenges.
• The overarching goal is to find ways to generate more energy cleanly and safely.