As a global investment manager, we help institutions, intermediaries and individuals meet their goals, fulfil their ambitions, and prepare for the future.
The role of renewable energy in the AI revolution
In the first of a series of articles exploring how sectors across the economy are driving demand for renewable energy, Schroders Greencoat’s Paul O’Donnell explores how the boom in AI applications is fuelling a rapidly increasing need for data centre capacity, which in turn is amplifying the need for sustainable power sources.
Key takeaways
- The data centre market has expanded rapidly amid ongoing digitalisation and the AI revolution – and there is growing demand to develop data centre capacity further.
- Exponential growth in data centre demand is translating into substantially increased demand for power globally.
- Access to renewable energy to meet this demand is critical to ensure tech companies and governments can meet their decarbonisation targets – and can be vital to ensuring projects pass planning hurdles.
- Contractual mechanisms, such as power purchase agreements, to secure necessary renewable power to fuel data centres could further underpin and enhance the value of renewable assets over the long term.
This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. This site is solely intended for use by institutional investors and institutional-investment industry consultants.
Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada. SFA markets certain investment vehicles for which other Schroders entities are investment advisers.
Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com
SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.