- Amazon (AMZN) and Nvidia (NVDA) are considering natural gas to power AI data centers due to immediate energy needs, despite their investments in renewables, as advanced technologies like nuclear and carbon capture won’t be available until the 2030s.
- Anthropic estimates AI will require 50 gigawatts of new power by 2027, equivalent to 50 nuclear reactors, prompting tech firms to prioritize reliable power sources like fossil fuels in the short term while exploring novel energy solutions.
- While Amazon aims for net-zero carbon by 2040 and Nvidia seeks clean energy options, both companies face a political shift under President Trump favoring fossil fuels, with coal considered but not prioritized for AI power needs.
The surging energy demands of artificial intelligence have prompted major tech firms like Amazon (AMZN) and Nvidia (NVDA) to consider fossil fuels, including natural gas, as viable power sources for their data centers, according to CNBC. At a recent gathering of tech and energy leaders at the Hamm Institute for American Energy in Oklahoma City, executives emphasized the urgency of securing reliable power to meet AI’s immediate needs, even as they navigate a shifting political landscape under President Donald Trump, who has prioritized fossil fuel production over climate commitments. Amazon, the largest corporate buyer of renewable energy, is investing in advanced nuclear and carbon capture technologies but acknowledges these won’t be available until the 2030s, leaving natural gas as a necessary interim solution to ensure steady power, as stated by Kevin Miller, Amazon’s vice president of global data centers.
Nvidia’s Josh Parker, senior director of corporate sustainability, underscored the need for an “all options on the table” approach, noting that while some customers prioritize clean energy, others are less concerned, highlighting the pressing need for power to sustain AI growth. Anthropic co-founder Jack Clark estimated that AI will require 50 gigawatts of new power by 2027, equivalent to the output of 50 nuclear reactors, and urged realism about current energy options while suggesting AI’s demand could spur innovation in novel power sources over time. Despite Trump’s push to boost coal production citing AI needs, executives expressed reluctance to embrace coal, with Clark noting it’s not a top priority but part of a broader set of options. Amazon remains committed to its goal of net-zero carbon by 2040, Miller affirmed, but meeting customer demand for capacity takes precedence, necessitating a pragmatic reliance on thermal generation in the short term. The discussions, as reported by CNBC, reflect the tech industry’s balancing act between environmental goals and the immediate energy realities of powering AI’s rapid expansion.
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