UK Government convenes AI Energy Council, but could be ignoring hidden climate impacts in supply chains

Edie 10th April 2025, Sidhi Mittal

The UK Government has officially launched its AI Energy Council, with its first meeting outlining five key priorities for aligning the country’s clean energy ambitions with the rapid growth of artificial intelligence (AI).

However, while the Council focuses on integrating AI intro the UK’s energy system, Ministers are being warned that they are overlooking the strain which AI supply chains are putting on energy systems overseas.

The Council is led by Science, Innovation and Technology Secretary Peter Kyle and Energy Secretary Ed Miliband. Representatives from companies including Microsoft, Google, Amazon, ARM, EDF and ScottishPower sit on the Council, alongside energy regulator Ofgem and the National Energy System Operator (NESO).

The Council this week met for the first time, and agreed on focus points for the year ahead. These include preparing the UK’s energy grid for the electricity demands of AI and computer infrastructure, accelerating renewable energy adoption, and ensuring AI’s role in the energy sector contributes to the transition to net-zero.

Emphasis was also placed on using AI to improve grid flexibility and ensuring its safe, secure deployment in the energy system.

This move comes amid growing pressure for the UK’s AI ecosystem to deliver more public benefit. A recent report from the Institute for Public Policy Research (IPPR) found that only 15% of AI firms in the UK are developing solutions aimed at social challenges such as public health or environmental sustainability, despite 20% having received public funding.

IPPR’s head of AI Carsten Jung said: “Too many companies are focussed on generic process improvements rather than coming up with new, better products. And too few innovations are aimed at solving big societal problems, such as public health and climate change.

“This quantity over quality, profit over purpose, speed over substance, approach is a hugely missed opportunity.”

But as the UK attempts to shape a greener AI-powered future through initiatives like the AI Energy Council, the global supply chain it relies on presents an emissions challenge far beyond its borders.

AI chip boom in East Asia drives fossil fuel surge

New research from Greenpeace East Asia has found that electricity demand for manufacturing AI chips has risen more than 350% between 2023 and 2024. East Asia—home to the bulk of global AI chip production—is seeing this growth largely powered by fossil fuels………………………..

Greenpeace East Asia’s supply chain project lead Katrin Wu said: “While fabless hardware companies like Nvidia and AMD are reaping billions from the AI boom, they are neglecting the climate impact of their supply chains in East Asia.

“Across East Asia, there are many opportunities for companies to invest directly in wind and solar energy, yet chipmakers have failed to do so on a meaningful scale.

“Hardware companies can overcome renewable energy bottlenecks by investing directly in wind and solar capacity, signing power purchase agreements, and leveraging their influence to advocate for a higher ratio of renewable energy in the grid.”……………………………………………………………. https://www.edie.net/uk-government-convenes-ai-energy-council-but-could-be-ignoring-hidden-climate-impacts-in-supply-chains/