Solar to dominate energy by 2035, but AI data centers will sustain fossil fuels
Original: Solar to dominate energy by 2035, but AI data centers will keep fossil fuels in business
Why This Matters
Shows how AI's energy demands could slow fossil fuel phase-out despite renewable growth
BloombergNEF report shows solar will become the largest power source by 2035, surpassing fossil fuels due to economic advantages. However, AI data centers' 24/7 power needs will drive demand for gas and coal, with fossil fuels providing 51% of incremental data center generation by 2050.
BloombergNEF forecasts solar will dominate global energy by 2035 on economic grounds alone, with prices expected to drop another 30% by then. Solar's cost decline stems from China's industrial subsidies and mass manufacturing efficiencies. Pakistan exemplifies this shift, adding 25 gigawatts of solar after gas prices spiked post-Ukraine invasion. Data centers will drive massive energy demand: 1 terawatt of utility-scale solar, 400 gigawatts of distributed solar, 370 gigawatts of natural gas, and 110 gigawatts of coal. Despite solar's growth, fossil fuels will provide 51% of incremental data center generation by 2050 due to their 24/7 reliability. Competition emerges from Google's $1 billion investment in 100-hour batteries from Form Energy, plus recent IPOs of geothermal company Fervo Energy and nuclear firm X-energy. Solar surplus in Spain and Italy has made standalone farms unprofitable, pushing developers toward hybrid renewable projects.