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Generative AI is accelerating the discovery of sustainable battery materials by identifying promising chemical compounds, while companies like LineVision use AI to optimize power line throughput, enhancing grid efficiency and resilience. These applications highlight how AI is driving both environmental and operational sustainability across energy, materials, and infrastructure sectors.

Sustainability and AI: what degree convergence?

A recent report by the Veolia Institute looking at correlating employment trends between AI and green economy sectors found a high degree of convergence. Those working in energy are newly endowed with specialist green skills. Energy specialist roles in the UK increased by 65% – in Belgium up 92% yoy.

“This trend underscores the industry’s ongoing transition to renewables and the critical need for expertise in energy efficiency, system integration, decarbonization strategy, and sustainable energy management.”

Of the proportion of green talent which upskilled in 2025, this is increasingly focused on AI

• India, 3.9% of green talent upskilled in AI (a 49% increase yoy)
• Germany, 3.6%
• USA, 3.4%

AI talent makes up 5.3% of the Technology, Information and Media segment, while 2.1% of workers in utilities are AI skills holders, representing an increase of 17% over 2024 – higher than manufacturing, where 1.9% are AI skills holders, and the oil, gas and mining sector where 1.3% are AI talent. However, for specific job related skills, such as an energy analyst, in Germany machine learning is ranked as no.16 in essential skills for the role.

Energy Supply Needs of AI Revolution

According to the International Energy Agency,

“ Affordable, reliable and sustainable electricity supply will be a crucial determinant of AI development, and countries that can deliver the energy needed at speed and scale will be best placed to benefit.”

Executive summary – Energy and AI – Analysis – IEA

The report points to the fact that the market capitalisation of AI-related companies listed in the S&P 500 has expanded by around USD 12 trillion since 2022. Global investment in data centres almost doubled over the same time period.

Of worldwide electricity consumption in 2024, data centres comprised 1.5%, of which the US formed 45%, China formed 25%, and Europe made up 15%. Across the globe, data centre electricity consumption has risen 12% since 2017, over 4x quicker than the rate of total electricity consumption. 

The report observes that data centres tend to be geographically concentrated in the same area – “We find that 50% of data centres under development in the United States are in pre-existing large clusters, potentially raising risks of local bottlenecks.”

 It advises that buffers be establish to insulate core infrastructure from the danger of energy shortages. Another suggestion is to operate data centres more flexibly and utilise back-up server supply to forestall over-loading the grid. Among developed countries, data centres make up over 20% of demand growth leading to 2030, “presenting a wake-up call on the need to put the electricity sector on a growth footing again.”

This extrapolated trend line obviously indicates spare capacity should be developed in conjunction with more efficient use of existing resources, and it modelled several growth scenarios with reference to gas storage and nuclear power options. It states there is vast potential in deploying AI to cut costs, better manage supply, increasing assets’ useful life period, decreasing time offline lost to inactivity, and reducing carbon emissions.

The IEA report’s executive summary stated that in the US, “By the end of the decade, the country is set to consume more electricity for data centres than for the production of aluminium, steel, cement, chemicals and all other energy-intensive goods combined.”

Correlation between AI/Green Skills and Impact

The Veolia report looks at the correlation between top green skills and fastest-growing green skills, concluding that 

“increasing adoption of skills related to repair and maintenance highlights a model of resource use that aligns with a circular economy.

It points to a wider proportion of skill sets informing environmental policy like ESG (151%), with management of Environment, Health and Safety standards increasing in incidence 103%, and CSR with reference to computer repair up 81% yoy. 

Repurposing of materials and non-current assets nearing the end of their useful lifetime is a process embedded into supply chains with the rollout of Digital Product Passports (DPPs) effective from 2027; and dynamic feedback controls nested in the operating environment to optimise working conditions for equipment can enhance productivity and ensure units stay online by clear asset management and residual materials disposal instructions.

AI and machine learning contribute towards an intelligent design which conducts modelling on operational data and metrics like thermal conductivity to inform unit cooling policies and set sustainable performance limits.

DPPs will be embedded in product packaging and accessed through QR codes, and will contain essential information on material composition, carbon footprint, repairability, and end-of-life instructions. This ensures accountability for suppliers and creates a universal set of benchmark standards unifying trade policies within the EU economic area for all potential stakeholders. 

Wider Impact of Environmental Standards and Reporting

Careful auditing of a company by its environmental impact is also an important way to differentiate its business offering for consumers. The CapGemini report on Consumer Trends in 2025 found that 38% of consumers have paid a premium of 1-5% more for sustainable products. In response to the statement, “I actively support brands that demonstrate transparent food waste reduction practices”, 62% of the sample in Nov 2024 agreed, vs 59% of those polled Nov 2023.

UK supermarket Tesco has pioneered new sustainable standards, becoming owner-operator of a waste processing plant for which it planned to contribute 40% of allowable supplies, with the further 60% capacity available for waste from other manufacturers and retailers. It contracted RenEco to build the plant in Northamptonshire, with potential to process 1,000 tonnes of surplus food per week. 

A previous contract with an organisation which incorrectly reported waste as going to animal feed, when it was actually supporting anaerobic digestion, resulted in it being incorrectly attributed –“Under the Food Waste Hierarchy, we count food going to anaerobic digestion as waste,” with this reclassification meaning the food waste reduction was only 18% against its baseline, where it was initially reported as 45%.

The Grocery Gazette reported at the time that Tesco in its progress report on waste reduction cited introduction of the Reduced-to-Clear section in over 300 stores, and nudging 106 Tesco suppliers to adopt ‘Target, Measure, Act’ by reporting their food waste. 

“The grocer has also established Tesco exchange as an online marketplace… matching surplus food with demand from suppliers across its supply chain…” it supported over 5,500 charities with unsold food from its stores.

Kroger delivered a prime example of deploying rich data at scale, when it achieved $1.3bn in operating profits in 2023 from its alternative profit business; with Kroger Precision Marketing, Kroger forecast its Retail Media Network (RMN) would grow 20% by 2024 through traffic generated from commercial ad placement and organically via affiliate marketing.

The Capgemini report stated, “Competitive pricing can attract cost-conscious shoppers, while using economies of scale to maintain quality promotes customer loyalty. One in five units sold in 2023 was store-branded, which is a record.”

Risk-reward of Upskilling and Data Mining

There has been an associated rise in skills related to environmental policy like ESG (up 151% YoY), environment, health, and safety (up 103% YoY), and corporate social responsibility (up 81% YoY). 

“As companies and stakeholders that employ AI talent place greater emphasis on reducing environmental impact and adhering to social and regulatory standards, AI professionals with these skills are better positioned to drive responsible innovation and ensure compliance.”