Amazon and Nvidia Signal Fossil Fuels May Play Role in Powering AI Growth
At a major gathering of tech and energy executives in Oklahoma City, Amazon and Nvidia acknowledged that fossil fuels, including natural gas, will likely be necessary to meet the surging energy demands of artificial intelligence (AI) in the near term as reported by CNBC. The discussions took place at the Hamm Institute for American Energy, where industry leaders explored strategies to support the US’s growing AI infrastructure.
Shifting from a Renewables-Only Focus
Although both companies have made substantial investments in renewable energy to lower carbon emissions, they now face a shifting political environment. Under President Donald Trump’s energy policies, US climate commitments have been rolled back in favor of boosting fossil fuel production, particularly natural gas.
Reflecting this shift, Kevin Miller, Amazon’s vice president of global data centers, emphasized during a panel that an “all-of-the-above” approach, including thermal generation, will be needed temporarily to stabilize the grid and meet customer demands.
Balancing Immediate Needs with Long-Term Climate Goals
Miller stressed that while Amazon remains committed to achieving net-zero carbon emissions by 2040, the company’s immediate priority is securing reliable power to meet explosive customer demand.
Amazon continues to lead in renewable energy purchases and is investing in advanced nuclear and carbon capture technologies, but these solutions are not expected to become commercially viable until the 2030s.
Miller said, “We’re very explicit that meeting customers’ demands for capacity is first and foremost in our priority list, and so having access to power is first and foremost what we focus on.”
Josh Parker, Nvidia’s senior director of corporate sustainability, echoed a similar sentiment, stating, "At the end of the day, we need power. We just need power." While some customers strongly prefer clean energy, others are less concerned, Parker noted, underscoring the need for flexibility in energy sourcing.
Also read: Amazon and Nvidia Reaffirm AI Data Center Expansion Amid Recession Fears
Coal Usage Sparks Debate
While fossil fuels like natural gas are gaining renewed acceptance, the prospect of using coal remains controversial. President Trump recently signed an executive order aimed at boosting coal production, citing AI-driven energy demand.
