In this episode of Sustainability Matters, host David Rae, EY Global Lead for Sustainability Technology and Innovation, explores the impact of AI on climate change. As AI companies build massive data centers worldwide, a critical question emerges: Will the skyrocketing resource footprint of AI push global grids past their limits, or will AI become a vital tool to help accelerate the energy transition? 

David is joined by James Grabert from the UNFCCC (United Nations Framework Convention on Climate Change) and Michael Lepech from Stanford University to break down the duality of this digital megatrend. Together, they look at the physical reality behind "the cloud," tracking how AI is driving a massive surge in electricity demand while also leaving an extensive water footprint through data center cooling and the lifecycle of chip manufacturing. 

However, they also identify areas of opportunity. The episode offers a hopeful look at "decision intelligence." The guests explain how AI is already delivering measurable climate benefits — from transforming early warning weather models in the Global South to balancing power grids and optimizing renewable energy.  

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