World-leading companies are rallying around energy efficiency solutions to power AI and data centres, as one of the key action areas for the new Smart Energy Coalition.
The Coalition, launched earlier this month by the global non-profit Climate Group, will also focus its work on smarter cooling and heating systems, with many countries seeing record temperatures this summer.
Thirdly, it will focus on energy efficiency as a strategic way to strengthen energy security.
Previously known as the EP100, the Smart Energy Coalition is made up of over 100 leading businesses across 200 markets and 15 industries – all committed to implementing energy efficiency measures.
Together, the Coalition’s members have saved US $164 million in 2024, and achieved over 8% annual energy productivity improvements, surpassing the global average of just 1%.
Electricity demand from data centres worldwide is set to more than double by 2030 – more than the entire electricity consumption of Japan, according to research by the International Energy Agency (IEA).
At the same time, rising global temperatures are leading to increased use of cooling systems – with record-breaking temperatures in UK, Japan, South Korea, and parts of Europe this summer.
Air conditioning is now the fastest-growing source of energy demand for the building sector, with an annual increase of nearly four per cent expected until 2035 under current policies.
Climate Group director of Energy, Sam Kimmins, said smart companies know energy efficiency is good business – it cuts costs, boosts competitiveness and strengthens energy security.
“Our members saved US $164 million last year by doubling down on efficiency,” he said.
“As demand surges from AI, data centres and cooling, efficiency is one of the fastest, most cost-effective solutions for businesses to adopt.”
According to the IEA, doubling energy efficiency by 2030 could reduce global emissions by 6.5 billion tonnes and cut global energy costs by nearly 10 per cent.