Tech companies are exploring various methods to address the increasing power demand of artificial intelligence (AI), reports Katie. Why it's important: The surging demand is reshaping energy markets and attracting external scrutiny. Recent developments: Today, Salesforce published new recommendations for policymakers to promote more sustainable AI practices, including requiring disclosure of environmental impact. Salesforce, which employs AI in its software, also proposed that AI-driven tech companies adhere to new energy efficiency standards. In a separate but related announcement, Exowatt announced a $20 million funding round with investors such as OpenAI CEO Sam Altman and venture capital firm Andreessen Horowitz. Led by entrepreneur Hannan Parvizian, Exowatt combines solar thermal technology with a thermal battery system packed into deployable containers near data centers. Similar to Salesforce, the Exowatt deal highlights the electricity demand of AI and the necessary measures to ensure a continuous and sustainable power supply. Quick recap: Tech companies are also exploring alternative strategies such as purchasing data centers near nuclear power plants and researching how pumped hydro can assist in storing energy for AI demand. Companies like Amazon, Google, and Microsoft have heavily invested in clean electricity for their data centers.

However, as electricity demand rises and waiting times increase for solar and wind integration into the grid, these companies are reevaluating their approaches to secure clean power. Zooming in: Megan Lorenzen, Director of Climate & Energy at Salesforce, emphasizes to Axios that regulation is vital for environmental protection and utilizing AI to combat the climate crisis. Salesforce is also urging policymakers to consider grants and tax incentives to support AI efforts aimed at environmental conservation. In conclusion: Tech companies are compelled to employ innovative strategies to tackle the challenging task of sourcing new sources of clean electricity.