Jensen Huang, CEO of Nvidia, recently offered advice to UK ministers regarding a multibillion-pound tech agreement with the US, suggesting that the UK should increase its reliance on gas. He emphasized the importance of energy for developing new industries, believing that a mix of sustainable energy sources, including gas turbines, could be necessary for growth. This stance contrasts with the UK government’s goal of reducing gas dependency in favor of a transition to net zero.
The tech deal, which coincided with a visit from Donald Trump, aims to support the establishment of energy-intensive data centers operated by US companies. The surging demand for these data centers is largely attributed to the rise of generative artificial intelligence, which requires immense data processing capabilities.
While the UK government seeks to enhance economic growth through such agreements, there appears to be a lack of public conversation regarding potential downsides. Concerns have been raised about the concentration of control over these technologies in a small number of powerful American firms, prompting questions about their long-term commitment to the UK market.
Research from MIT cautions against the unchecked growth of generative AI, advocating for a more strategic approach that considers environmental implications. The International Energy Agency projects that global electricity consumption by data centers could more than double within a few years. Additionally, as generative AI models increase in complexity, their energy demands could rise significantly, leading to a potential 24-fold increase in electricity use.
Coupled with this tech agreement is a nuclear cooperation plan aimed at constructing small modular reactors, which could help meet the energy needs of data centers, although such projects will require several years for completion.
The rapid expansion of AI and related technologies coincides with increasing electricity demand and a governmental push for more sustainable energy practices, raising critical questions about how to balance these competing priorities. Concerns also extend to resource usage, including water for cooling, as the UK faces potential shortages.
While some benefits of AI are acknowledged, emerging evidence highlights social costs that warrant careful consideration in ongoing discussions about the integration of these technologies into UK society.
Source: https://www.theguardian.com/business/2025/sep/21/labour-cosies-up-to-us-tech-firms-ai-with-little-thought-of-downsides