Artificial intelligence (AI) is rapidly transforming industries, but its soaring energy demands are becoming a pressing concern. At the recently held Energy Efficiency Day 2025, hosted by the Philippine Energy Efficiency Alliance (PE2) at the SMX Convention Center, Schneider Electric Philippines country president Ireen Catane warned that AI, climate change, and the energy transition are reshaping business, with energy efficiency emerging as the key response.
Catane highlighted the staggering growth of AI, noting that generative AI reached 100 million users within two months—far surpassing past adoption rates of transformative technologies. However, this innovation comes at a cost.
“One ChatGPT search uses 10 times more energy than a simple Google search,” she pointed out, adding that at the current pace, AI is expected to drive data center power consumption 4.2 times higher from 2023 to 2028. Without intervention, she cautioned, this could lead to an additional 10 terawatt-hours of electricity being consumed annually—an unsustainable trajectory.
Beyond AI’s impact, Catane underscored climate change’s growing risks. “Nearly half of businesses in Asia—48%—see climate change as a major risk, with this figure climbing to 70% in the Philippines,” she noted. Over the past year, 41% of firms reported climate-related supply chain disruptions and rising costs, while 32% experienced direct financial or physical damage.
On the energy transition, she pointed out that existing technologies could reduce global carbon dioxide emissions by 70%, with potential savings of up to USD 2 trillion annually by 2030. However, challenges remain. “About 29% of companies cite the immaturity of clean energy alternatives as a barrier to decarbonization,” she said, emphasizing the need for accelerated innovation and adoption.
Despite the urgent need for action, a gap remains between intent and execution. Citing Schneider Electric’s 2024 Green Impact Gap Survey, Catane revealed that while 98% of Philippine-based companies have sustainability goals, only 52% are taking comprehensive steps to achieve them. “The gap has widened by five points from last year, underscoring the urgency for stronger implementation,” she warned.
Catane emphasized that energy efficiency is not just an environmental imperative—it’s good business. “Investing in energy-efficient solutions offers significant returns. Energy-efficient buildings enhance property value, and 42% of respondents see increased business opportunities,” she said. She urged greater collaboration among utility providers, tech firms, regulators, and consumers to drive real progress.
What do you think about AI’s growing energy demands? Should businesses and policymakers take more urgent action to balance innovation with sustainability? Share your thoughts in the comments!
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