Reflections from inside the UK's leading climate tech hub

I co-founded Sustainable Ventures with the belief that innovative technologies are critical in the fight against climate change. Fourteen years later, I still work at the intersection of climate innovation and technology. A recurring topic in conversations with founders has been AI and its role in the climate sector. While AI can transform key industries, it also raises important questions about its energy footprint and long-term sustainability.

Recognizing AI's significance, my team at SV is diving deeper into this complex issue. Through data analysis and discussions with founders and technology partners, we’re forming a clearer picture of AI’s potential for climate tech startups. Stay tuned for our white paper launching next month.

The Energy Footprint Question

As AI becomes more embedded in our economy, its energy demands come under scrutiny. Recent projections suggest that AI-driven data centers could account for 4% of global electricity demand by 2030. While these concerns are serious, history shows that fears of runaway energy consumption can be overstated. For instance, between 2010 and 2018, global data center workloads rose over 600%, yet energy use grew by only 6% due to efficiency gains.

Since the 1970s, the energy required per computation has halved approximately every 1.5 years—a trend known as Koomey’s Law. Innovations like NVIDIA's Grace Hopper Superchip have demonstrated a 4x reduction in energy consumption while delivering 7x performance improvements. Transitioning to energy-efficient GPUs could save over 40 TWh annually, enough to power nearly 5 million U.S. homes.

AI as a Climate Solution

While it’s essential to consider AI’s energy footprint, we must not overlook its potential to reduce emissions across various sectors. AI enhances the efficiency of renewables like solar and wind. For example, the UK’s National Grid ESO uses AI for real-time solar forecasting, while DeepMind has increased wind energy market value by 20%.

In agriculture, AI-powered systems improve yields and reduce resource use. John Deere's "See & Spray" system, for instance, reduces herbicide use by up to 77%.

I'm particularly excited about AI's ability to help early-stage climate tech startups overcome operational hurdles. By accelerating R&D and streamlining manufacturing, AI helps teams bring technologies to market faster—vital for this capital-intensive sector.

Looking Ahead

While AI is not a silver bullet, it can play a crucial role in making the climate tech sector faster and smarter. I’m eager to hear from the climate tech community: How are you leveraging AI? What challenges do you face? Let’s work together to bring innovative climate tech solutions to real-world deployment. I look forward to sharing more on our “AI in Climate Tech” white paper when it launches next month—stay tuned!

Sustainable Ventures