CBRE: Can AI Turn Data Centres into Energy Producers?

With AI in play, digital hubs are beginning to optimise electricity use, support renewable integration and turn waste heat into valuable resources.

CBRE takes a fresh look at data centres — not just as large-scale energy consumers, but as emerging energy contributors. 

As demand for AI and cloud-based services grows, so too does pressure on data centres to lower their carbon footprint. 

CBRE focuses on the opportunities to reshape their energy role.

The energy challenge of data centres

Data centres support the core of the digital economy. 

From video streaming and ecommerce to artificial intelligence, they enable much of the infrastructure that modern society relies on, yet this comes at an energy cost.

In 2024, global data centres were estimated to consume between 415 terawatt-hours (TWh) and 460TWh of electricity — around 2% of global electricity demand. 

However, by 2030 estimates suggest that figure could reach between 945TWh and 1,065TWh – this level of energy use would rival Japan’s entire annual electricity consumption.

Much of this projected increase is attributed to AI. 

By 2027, AI alone is expected to require between 85TWh and 134TWh annually – the equivalent of Singapore’s energy consumption over a span of 18 months to three years, according to estimates from Digiconomist.

While these figures underscore the scale of energy used, CBRE argues for a wider perspective. 

It is not just about the energy consumed, but also the energy saved or repurposed.

Data centres and AI can be part of the solution, according to CBRE.

AI in energy sustainability

The perception that AI and data centres clash with sustainability goals stems from their energy intensity. 

These facilities can also deliver environmental benefits by supporting services that reduce energy use elsewhere — for example, enabling remote work and eliminating emissions from commuting or physical media distribution.

“The increased resource demand associated with AI may contribute to the perception that AI and data centres are at odds with sustainability goals. However, it is important to recognise the significant energy and carbon emissions reduction benefits that this technology can provide,” CBRE says in its Data Centres, AI and Sustainability: Navigating the Carbon Paradox report.

“By weighing the inputs against the benefits, a more nuanced, holistic view of the advantages of leveraging technology emerges.

“This shift could help reframe the perception of AI and data centres to acknowledge their potential contributions.”

CBRE identifies three main strategies to improve the energy footprint of data centres through AI and digital innovation.

Efficient energy contributors

The first strategy is electricity consumption optimisation. 

Using real-time data and AI, facilities can adjust their operations based on factors like grid load, weather patterns and occupancy. 

This enables them to shift energy usage to times when renewable energy is plentiful and to reduce unnecessary consumption.

Second, CBRE points to the potential of smart grid integration, AI can allow data centres to act not only as consumers but also as producers of energy. 

“The potential return is remarkable,” says Robert Bernard, Chief Sustainability Officer at CBRE.

“Our analysis shows that these strategies can deliver massive energy and carbon savings that far outweigh the resources invested.

“This isn’t just good for our planet — it’s smart business.

“When we design these data centres thoughtfully and intentionally, these facilities can become active participants in the green economy.”

Facilities can feed excess electricity back into the grid or repurpose waste heat, boosting resilience and helping to stabilise local energy systems. 

This makes data centres active contributors to the grid, supporting renewable energy adoption.

Third is the idea of strategic colocation and heat reuse.

AI workloads do not always require the lowest possible latency. 

This allows data centres to be built in regions with cleaner electricity or established district heating networks. 

CBRE cites an example: a facility in Sweden, powered by low-carbon energy and linked to a district heating system, can emit up to 40 times less CO₂ than a similar centre in Singapore.

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