AI’s Dual Promise: Enabling Positive Climate Outcomes and Powering the Energy Transition

This report was produced by KPMG a member of IPFA. 

Drawing on insights from over 1,200 executives across twenty markets, spanning energy producers (utilities, renewables, infrastructure developers) and major energy consumers (hyperscalers, data center operators, and technology firms), the global study explores how organizations are using artificial intelligence to drive sustainability and where action must accelerate.

AI is moving faster than any technology in history. In just a few years, it has shifted from experimentation to becoming the engine of global productivity and innovation. Yet its rapid rise has sparked debate, can the same technology driving progress also accelerate the clean energy transition or is it going to have an adverse impact on making progress on the climate agenda? The KPMG research shows that AI’s potential climate benefits far outweigh the negative climate implications arising from the use of fossil fuels-based energy generation to power data centers and other parts of the AI revolution.

This report speaks directly to the key stakeholder groups – hyperscalers, power and utilities, developers, investors and governments – who stand at the crossroads of AI acceleration and climate responsibility. Each faces a different version of the same challenge: how to advance AI without undermining sustainability and how to use sustainability as a competitive advantage. This is a once-in-a-generation opportunity to turn technology’s appetite for energy into the engine of a cleaner, more sustainable future.

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