How companies are balancing AI data center energy demand and sustainability

The rapid expansion of AI-driven data centers is putting unprecedented pressure on energy supply, emissions and water availability. At the start of 2026, S&P Global named AI and data center growth as a top sustainability trend to watch, and it was a dominant theme at both Climate Week Zurich and CERAWeek 2026 in Houston, where the conference title was "Convergence and Competition."

In this episode of the All Things Sustainable podcast, we explore how the tech and energy industries are converging to meet the growing power demands of AI while also protecting the planet and local communities. In three interviews from the sidelines of CERAWeek, we ask how companies can deliver reliable energy to power AI without sidelining affordability, emissions, water and community concerns.

Arshad Mansoor, President and CEO of the Electric Power Research Institute (EPRI), explains how the research organization is convening stakeholders across the energy ecosystem to meet growing energy demand.

"Without convergence, without the stakeholders coming together to solve critical policy issues, technical issues, regulatory hurdles, we will not be able to bring speed to power," Arshad says.

We talk to Alexis Bateman, Head of Sustainability at Amazon Web Services (AWS), the cloud-computing and technology services subsidiary of Amazon. She discusses why one of the world's largest hyperscalers takes a "multipronged" approach to powering AI infrastructure that balances grid reliability and sustainability.

"We have to play both sides of the coin," Alexis says. "We have customers that are reliant on our cloud services every single day, and so we have to be a reliable partner for them. At the same time, our first choice will always be carbon-free energy and making sure that we have a steady supply."

And we sit down with Lydia Krefta, Senior Director of Electrification and Decarbonization at one of the largest US utilities, Pacific Gas and Electric Company. PG&E operates in the heart of Silicon Valley, and Lydia explains how the utility is managing the build-out needed for both electrification and data centers.

Lydia also highlights a less-discussed bottleneck in the AI build-out: human capital. Even where capital and technology exist, utilities still need enough skilled workers to plan, permit and construct the infrastructure required to meet surging demand.

Further reading and listening:

Beneath the surface: Water stress in data centers | S&P Global

CSO Insights: California's biggest utility talks decarbonization, climate adaptation and AI energy demands | S&P Global

S&P Global's Top 10 Sustainability Trends to Watch in 2026 | S&P Global

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