Companies form coalition to accelerate AI energy efficiency

Over 100 companies in 15 different sectors have formed the Smart Energy Coalition, with a goal to accelerate energy efficiency solutions to power AI and data centres.

The coalition will also focus on developing and implementing smarter cooling and heating systems to better handle climate change-driven temperature extremes.

The group is made up of companies that were already committed to energy efficiency as part of the EP100 initiative (now replaced by the coalition) – including ABB, Johnson Controls, Mitie, AstraZeneca, Schneider Electric, Omron and Danfoss. Together, these members already saved US$164 million and achieved more than 8% energy efficiency improvements in 2024 – far higher than the global average of 1%.

Sam Kimmins, Director of Energy at Climate Group (the nonprofit leading the initiative), said: “Smart companies know energy efficiency is good business – it cuts costs, boosts competitiveness and strengthens energy security. Our members saved US$164 million last year by doubling down on efficiency. As demand surges from AI, data centres and cooling, efficiency is one of the fastest, most cost-effective solutions for businesses to adopt. Through the Smart Energy Coalition, world-leading corporates are driving innovation and shaping policy to accelerate progress.”

Curbing data centre power demand

Power demand from data centres worldwide is expected to more than double by 2030 as AI deployment accelerates, and at the same time, rising global temperatures will require increased use of cooling systems. 

Read also: Data centres could consume 12% of US electricity within four years

According to Climate Group, air conditioning is now the fastest-growing source of energy demand for the building sector, with an annual increase of nearly 4% expected until 2035 under current policies.

Stacy Mahler, US Head of Sustainability at Siemens, a member of the Smart Energy Coalition, added: “In a world of competing priorities, we consider energy efficiency to be at the top of the list. The technology to implement it exists today and brings immediate benefits from a cost as well as an operational perspective.” 

IEA data has shown that doubling energy efficiency by 2030 could reduce global emissions by 6.5 billion tonnes and cut global energy costs by nearly 10%.