Artificial intelligence is growing quickly, and so is the need for data centers. These facilities power AI tools, cloud computing, and daily online services. However, they also use large amounts of electricity, water, and materials.

A new initiative aims to make data centers more sustainable and help climate-focused startups grow.

Elemental Impact, a nonprofit investor in climate technologies, launched the Data Center Innovation Initiative (DCII). This program unites major tech companies like Amazon, Google, Meta, and Microsoft to support new clean energy and industrial technologies.

The initiative plans to invest $500,000 to $5 million in up to 10 startups by 2027. These companies will test new technologies in data centers or at demonstration sites. The goal is to prove these solutions can work at scale and later expand them to other industries.

Why AI Data Centers Are Consuming Record Levels of Power

The rapid rise of AI is driving a major infrastructure boom. AI systems need powerful processors and advanced computing gear. These systems run in massive data centers that operate 24/7.

As AI use grows worldwide, electricity demand is surging.

• A recent United Nations report predicts global electricity demand could increase by over 10,000 terawatt-hours by 2035. This is roughly equal to the total electricity use of all advanced economies today.

Data centers are a key reason for this surge.

• The International Energy Agency (IEA) estimates that data centers consumed around 415 terawatt-hours (TWh) of electricity globally in 2024. In 2023, they used about 240 TWh. This means electricity use jumped nearly 73% in just one year, mainly due to AI growth.

This rapid increase forces governments, utilities, and tech companies to rethink power systems.

The IEA expects data centers to drive over 20% of electricity demand growth in advanced economies by 2030. In the U.S., they could account for nearly half of all future power demand growth during that time.

Countries with major AI hubs, like the U.S., China, and parts of Europe, face rising pressure on their power grids. Utilities must add new power generation, upgrade transmission systems, and secure cleaner electricity supplies to meet future demand.

A New Push for Cleaner Infrastructure

Elemental Impact believes data centers can test climate technologies that will spread across the economy.

The DCII focuses on several key areas:

• Energy storage systems
• Advanced electrical infrastructure
• Low-carbon construction materials
• Cooling technologies that reduce water and electricity use
• Clean energy solutions that enhance grid reliability

These technologies will first be tested in real data center settings. If successful, they could later support schools, hospitals, factories, and communities needing reliable energy.

Dawn Lippert, CEO and founder of Elemental Impact, said the rapid growth of data centers offers a unique chance to speed up essential climate technologies.

She explained that partnerships with major tech firms can help entrepreneurs commercialize innovations faster while lowering emissions and improving local energy systems.

Unlike many climate programs focusing only on research, the DCII emphasizes deployment. The initiative aims to move technologies from early development to real-world use.

Big Tech Companies Back the Initiative

Amazon, Google, Meta, and Microsoft will play active roles in the initiative. These companies will help identify key technology areas, evaluate projects, and test selected technologies in their operations.

They also plan to share lessons learned with the wider industry.

Microsoft’s Chief Sustainability Officer, Melanie Nakagawa, said sustainable data center design is one of the fastest-growing opportunities for clean technology. She added that Microsoft wants to scale solutions that improve reliability, lower emissions, and strengthen communities.

Google’s Chief Sustainability Officer, Kate Brandt, stressed that partnerships are vital for tackling climate challenges. She noted the company aims to create markets for new clean energy and sustainability technologies.

Amazon highlighted its experience in enhancing energy and water efficiency across its data centers. The company believes the initiative can help develop a shared industry playbook for scaling technologies like carbon-free power and advanced cooling systems.

Meta emphasized data centers’ role in supporting sustainable materials and clean energy innovation.

• ALSO READ: Green AI Explained: Fueling Innovation with a Smaller Carbon Footprint 

Renewable Energy Will Play a Major Role

The growth of AI and digital infrastructure is straining global energy systems. At the same time, countries aim to reduce emissions and move away from fossil fuels.

This means renewable energy will be increasingly important.

Solar and wind power currently lead new electricity generation worldwide. In 2023, global solar capacity grew by over 32%. Total renewable energy capacity also surpassed 4,400 gigawatts.

These clean energy sources help meet rising demand from data centers and other sectors like transportation and manufacturing.

Still, experts warn that renewable growth alone may not suffice. Global electricity demand could increase by about 30% by 2035. AI growth, electric vehicles, industrial electrification, and population growth all contribute to this rise.

To meet future demand while cutting emissions, countries will likely need a mix of renewable energy, energy storage, grid upgrades, and possibly nuclear power.

Corporate Demand Drives Clean Energy Growth

The expansion of AI is no longer just a tech story. It is also an energy and infrastructure challenge. And data centers drive this transformation. Their rapid growth boosts electricity demand, speeds up grid investments, and opens new doors for climate innovation.

Companies are playing a major role in expanding clean energy in the U.S. Since 2014, CEBA has tracked over 143.8 gigawatts (GW) of clean energy deals. These projects include solar, wind, nuclear, battery storage, and other carbon-free technologies.

Despite economic and market challenges, 2025 became the second straight record year for new clean energy capacity announcements in the country.

Elemental Impact Pushes Community-Driven Growth for Sustainable Data Centers

Elemental Impact emphasizes the initiative’s focus on local economic and environmental benefits.

The nonprofit plans to work closely with communities where projects are developed. This includes supporting workforce development, clearly communicating project benefits, and involving local stakeholders early in the process.

According to Elemental, 98% of companies in its current portfolio say community partnerships have been key to their success. This approach may help reduce resistance to new infrastructure projects while creating jobs and improving energy access.

The initiative also aims to lower risks for future technology adopters. Documenting project results and sharing performance data can boost other companies’ confidence. This may encourage them to invest in similar technologies.

In conclusion, the Data Center Innovation Initiative reflects a broader shift in the tech industry. Companies are no longer focused solely on powering AI growth. They are also seeking ways to make that growth cleaner, more efficient, and more sustainable.

• READ MORE: AI Data Center Market to Hit $1.7 Trillion in 2030, Bank of America Reports as Energy and Emissions Pressures Rise

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Global trade in clean energy products grew again in 2025 despite tariffs, political tensions, and unstable energy markets. According to BloombergNEF (BNEF), global clean-energy trade reached $479 billion in 2025, rising 1% from the previous year. The recovery came after a decline in 2024.

The growth is important because it happened during a difficult period for global trade. The United States and other countries expanded tariffs on clean energy products. At the same time, conflict in the Middle East pushed oil and gas prices higher and created uncertainty across global markets.

Still, demand for solar panels, batteries, electric vehicles (EVs), and power-grid equipment continued to rise.

Antoine Vagneur-Jones, lead author of the report, remarked:

“As conflict in the Middle East persists, many markets are doubling down on the deployment of clean technology to improve their energy security and resilience. This presents a huge opportunity for manufacturers to expand exports of the equipment and products required to power the energy transition.”

This shows that the global energy transition is continuing even during political and economic uncertainty.

When Oil Gets Expensive, Solar Gets the Spotlight

One major reason for the rebound is rising fossil fuel costs.

Oil and gas prices increased during the Middle East conflict. This placed pressure on countries that depend heavily on imported fuel. In response, many governments and businesses accelerated investments in solar power and battery systems.

BloombergNEF highlighted Pakistan as one of the clearest examples. After the energy crisis linked to Russia’s invasion of Ukraine, Pakistan sharply increased solar imports. The country’s solar module imports jumped by about 189% to nearly $1 billion in 2022.

That growth continued into 2025. Pakistan reportedly installed around 18.3 gigawatts of small-scale solar capacity in a single year. High electricity prices and power shortages pushed households and businesses to adopt rooftop solar systems.

Similar trends are now appearing across Southeast Asia and parts of Africa. Countries are turning to renewables because solar and battery systems can reduce exposure to volatile fuel prices.

Technology costs are also improving. BloombergNEF reported that average lithium-ion battery pack prices fell from $118 per kilowatt-hour in 2024 to about $108 per kilowatt-hour in 2025.

The International Energy Agency reported that global clean energy investment hit about $2.2 trillion by 2025. That’s roughly double what’s expected for fossil fuels.

• RELATED: Clean Energy Investment Hits Record $2.3T in 2025 Says BloombergNEF: What Leads the Surge?

China Continues to Lead the Clean Tech Market

China remains the world’s largest clean-energy manufacturing hub. BloombergNEF said Chinese investment has created a major oversupply across several sectors. These include solar panels, batteries, and electric vehicles. In some industries, manufacturing capacity now exceeds 200% of expected global demand.

This oversupply has pushed prices lower worldwide. Lower prices benefit consumers and project developers. However, they make it tougher for manufacturers in the U.S. and Europe to compete.

China’s EV industry shows the scale of its dominance. Chinese EV exports reached about $69.6 billion in 2025, rising roughly 43% from the previous year. China also produced around 16 million new energy vehicles and exported about 2.6 million EVs globally.

Chinese companies are also expanding quickly into developing markets. Exports of Chinese EVs to Africa reportedly rose 189% year-on-year.

China continues to dominate solar manufacturing as well. BloombergNEF said solar cell trade made up about 44% of global solar cell and module trade in 2025, compared with 25% the year before.

This shows how global supply chains are adapting to tariffs rather than slowing down completely.

Tariffs Shift the Map, But Don’t Slow the Flow

The United States and Europe are trying to build local clean energy industries through subsidies and tariffs. However, BloombergNEF said tariffs have not significantly reduced global clean-tech trade.

Instead, companies are shifting production to other countries. Manufacturing is expanding in places such as India, Vietnam, Thailand, Turkey, and Egypt. These countries are becoming important parts of global clean energy supply chains.

India is emerging as one of the strongest new competitors. BloombergNEF said India’s growing solar manufacturing industry could help the country become a major exporter in the future.

Still, China remains dominant across most sectors. Though many factories in the United States and Europe mainly handle final assembly, they do not focus on full supply chain production. Some projects are also facing delays because of high costs and weaker demand.

As a result, China could remain the leading supplier of many clean energy products for years to come.

Battery Storage and Grid Investment Continue Rising

Another major trend is the rapid growth of battery storage and power grid investment. As more countries build solar and wind projects, they also need battery systems to stabilize the electricity supply.

BloombergNEF said energy storage systems accounted for about 29% of global battery shipments in 2025. Shipments in this sector grew by around 64% year-on-year, showing strong demand for large-scale energy storage. It will continue to grow over the next decade, as shown below. 

Countries are also investing heavily in power grids. Governments are improving transmission systems. They aim to support renewable energy, electric vehicles, and the growing electricity needs from artificial intelligence and data centers.

BloombergNEF estimated that global energy transition investment reached a record $2.3 trillion in 2025. Large clean energy companies are also expanding climate and sustainability efforts.

• Tesla continues to expand battery and renewable energy projects as part of its long-term net-zero strategy.
• BYD is rapidly growing its EV and battery production while expanding exports to global markets.
• First Solar continues to invest in domestic solar manufacturing and lower-carbon production systems.

These efforts are becoming more important as investors and governments push companies to reduce emissions and strengthen energy security.

Clean Energy Trade and the Emissions Gap

Clean energy trade is growing, but global emissions remain very high. This shows a gap between clean energy progress and climate needs.

According to the International Energy Agency, global energy-related CO₂ emissions reached about 37.8 billion metric tons in 2024, marking another record high. The energy sector still produces about three-quarters of global greenhouse gas emissions.

The Intergovernmental Panel on Climate Change (IPCC) warns that emissions must fall sharply to avoid severe warming. It estimates global emissions need to drop about 43% by 2030 compared with 2019 levels to stay on a 1.5°C pathway.

This highlights the urgency behind clean energy expansion. Investment is rising, but the transition is uneven. While clean energy investments reached a record high, fossil fuels continue to supply a large share of global energy demand.

This creates a widening gap. Clean energy is growing quickly, but not yet fast enough to replace fossil fuels. Until clean power expands faster than rising energy demand, global emissions are likely to stay near record levels.

Clean Energy Is No Longer a Trend; It’s Trade Policy

The rebound in clean energy trade to $479 billion in 2025 shows that the global energy transition is still advancing. This is despite tariffs and geopolitical tensions.

Rising fossil-fuel prices are pushing more countries toward renewable energy. At the same time, demand for batteries, solar panels, EVs, and power-grid equipment continues to grow.

This points to a bigger picture: Clean energy trade is no longer only about climate goals. It is now closely tied to economic growth, industrial competitiveness, energy security, and long-term stability.

As countries continue to electrify their economies, global trade in clean energy technologies will likely remain one of the fastest-growing parts of the world economy.

• READ MORE: The Top 4 Clean Energy Stocks Dominating 2026 as AI Supercharges Power Demand

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Disseminated on behalf of Alaska Energy Metals Corporation

Alaska Energy Metals Corporation (AEMC) is starting to draw serious attention from investors. The reason is simple: it offers exposure to nickel, a key metal for electric vehicles (EVs) and clean energy, at a very early stage and a low valuation. At the center of this story is the company’s Nikolai project in Alaska, which combines large-scale resources, improving economics, and a steady flow of upcoming catalysts.

Put together, these factors are building a strong case for a potential re-rating.

Nikolai’s Massive Nickel Resource Stands Out

The Nikolai project is one of the largest undeveloped nickel resources in North America. As of March 2025, it hosts:

• 5.6 billion pounds of indicated nickel
• 9.4 billion pounds of inferred nickel
• Plus copper, cobalt, platinum, palladium, gold, chromium, and iron

This mix of metals matters. Nickel and cobalt are essential for EV batteries, while platinum and palladium add extra value. As a result, the project is not dependent on just one commodity.

Even more important, the deposit sits within a pit shell. This suggests it could be mined using open-pit methods, which are generally cheaper and easier to scale than underground mining.

Grades also support early development. The indicated resource averages about 0.30% nickel equivalent, with a higher-grade core extending over 2.5 kilometers near the surface. This could allow for faster production and earlier cash flow.

Recent drilling has already significantly expanded the resource. Between 2023 and 2024, indicated resources grew by 45%, while inferred resources jumped by 122%. This shows the system is still open and has room to grow.

From Explorer to Value Creator: A Shift the Market Is Missing

As of May 2026, AEMC is consolidating with a market cap of CAD 15 million. While the stock currently trades at a speculative CAD 0.07–0.10, the outlook is bolstered by the upcoming Preliminary Economic Assessment (PEA) for the Nikolai Nickel Project and a tightening global nickel market driven by Indonesian supply constraints.

As the company advances through federal permitting and metallurgical studies, its valuation remains sensitive to news flow; however, its positioning as a large-scale domestic source for critical minerals provides a strategic foundation for potential long-term growth as the project de-risks.

However, the company is moving beyond early exploration. It is now entering a stage where studies will start to show real economic potential. This shift is critical, yet the market has not fully priced it in.

At the same time, the broader nickel market is changing. After a period of oversupply, conditions are tightening. Nickel price have already risen 37.5% from $14,241 on December 14, 2025 to $19,587 per tonne on May 6, 2026, and demand continues to grow with EV adoption.

McDonald’s has admitted it will likely miss one of its major climate goals, showing how difficult supply chain decarbonization has become for global food companies. The food chain giant said it no longer expects to meet its target of cutting value chain emissions by 2030. Still, McDonald’s says it remains committed to reaching net-zero emissions across its operations and supply chain by 2050.

The update matters because McDonald’s is one of the world’s largest restaurant companies. It operates more than 43,000 restaurants in over 100 countries and serves around 70 million customers every day.

The food industry closely watches the company’s climate progress, where reducing emissions from agriculture and livestock is still difficult. McDonald’s states that inflation, new regulations, and tech limits have slowed progress to its 2030 goal. The size of its global supply chain also plays a role.

The company wrote:

“We still maintain a long-term ambition: net zero emissions by 2050. We know this depends on many external variables—the changes required to reduce Scope 3 emissions are largely systemic and interconnected across the value chain. Given these realities, we face significant challenges, and at this point, we do not expect to reach our 2030 Scope 3 goal on the original timeline.”

Supply Chain Emissions Remain McDonald’s Biggest Climate Challenge

McDonald’s says most of its emissions come from its supply chain rather than from restaurant operations. The company previously pledged to:

• Cut Scope 1 and 2 emissions by 50.4% by 2030
• Reduce Scope 3 energy and industrial emissions by 50.4% by 2030
• Cut Scope 3 forest, land, and agriculture (FLAG) emissions by 16% by 2030
• Reach net zero across the business by 2050

McDonald’s reported total greenhouse gas emissions of about 60.5 million metric tonnes of CO₂e in 2024. This is a decrease from around 63.3 million tonnes in 2018.

The company’s direct operational emissions improved. Scope 1 emissions dropped to 94,233 tonnes CO₂e in 2024, down from the 2018 level. Market-based Scope 2 emissions also declined sharply to 118,334 tonnes, compared with the baseline year.

However, Scope 3 emissions, mostly from agriculture, packaging, logistics, and franchises, made up around 60.2 million tonnes CO₂e of McDonald’s climate footprint in 2024. These supply chain emissions remain the company’s biggest challenge as it works toward its long-term net-zero target.

Food Systems Face Rising Pressure to Cut Emissions

McDonald’s reflects a broader challenge facing the global food sector. The United Nations Food and Agriculture Organization estimates that food systems produce about one-third of global greenhouse gas emissions.

Livestock production is a big contributor to greenhouse gases. Cattle release methane, which is much stronger than carbon dioxide in the short term.

At the same time, global meat demand continues rising. The OECD and FAO predict that global meat consumption will continue to rise over the next ten years. This growth will be especially strong in emerging economies.

This creates a difficult balance for food companies. Consumer demand for beef is strong. However, investors, regulators, and governments want companies to cut emissions.

Many food companies now face pressure to improve:

• Methane reduction,
• Forest protection,
• Packaging sustainability,
• Renewable energy use, and
• Agricultural supply chains.

However, changing large global supply systems takes years and often requires cooperation from farmers, suppliers, franchisees, and logistics operators. Amid all these, McDonald’s focuses on cutting emissions from its operations. 

McDonald’s Expands Renewable Energy and Low-Carbon Operations

Even as its supply chain target slips, McDonald’s continues investing heavily in climate action across restaurants, sourcing, and logistics. The company is committed to reaching net zero by 2050. It also aligns its climate goals with the Science Based Targets initiative (SBTi). 

The food chain giant states that restaurant operations are a key focus. This is because energy use, refrigeration, and cooking systems create significant emissions.

McDonald’s total GHG emissions have remained largely flat over 2020–2024 at roughly 60–62 million metric tons of CO₂e. It was able to cut emissions down by around 4.5% in 2024 compared with 2018 levels.

The company continues upgrading restaurants with energy-efficient kitchen equipment, LED lighting, smart energy systems, and lower-emission refrigerants. It keeps growing renewable electricity sources through virtual power purchase agreements and renewable energy certificates.

According to the report, McDonald’s now tracks emissions using millions of operational and supply-chain data points across sourcing, logistics, and restaurants. The company says these systems help identify emission hotspots and improve supplier accountability.

Transportation and logistics are also part of the company’s climate strategy. McDonald’s says suppliers are reducing fuel use through these means:

• route optimization,
• engineless refrigerated trailers,
• driver efficiency programs, and
• alternative fuels, including renewable natural gas, electricity, hydrogen, propane, and biofuels.

The company also continues pushing sustainability standards deeper into its supply chain. McDonald’s works with suppliers and farmers on several key areas. They focus on regenerative agriculture, forest protection, and reducing methane from beef and dairy. These practices help address emissions, which are significant for the company.

Packaging remains another major initiative. McDonald’s reports that more than 90% of guest packaging materials now come from renewable, recycled, or certified sources. The company also continues efforts to reduce packaging waste and increase the use of recycled materials globally.

McDonald’s highlights that engaging suppliers is crucial. About 99% of its total emissions come from Scope 3 sources. These include agriculture, packaging, transportation, and franchise operations. The company added that long-term progress will depend heavily on how quickly lower-carbon technologies and farming systems scale globally.

Methane Reduction and Regenerative Agriculture Become Critical

Methane reduction now plays a central role in food-sector climate plans. The United Nations Environment Programme says methane has more than 80 times the warming power of CO₂ over 20 years.

Because beef remains one of McDonald’s largest emissions sources, the company increasingly focuses on lower-carbon farming practices. These include improved grazing systems, feed efficiency, manure management, and regenerative agriculture.

McDonald’s says it aims to scale regenerative agriculture practices across its supply chain to improve climate resilience and help reduce emissions.

Still, experts say large-scale adoption remains difficult because farmers often face high upfront costs and uncertain financial returns.

Investors Want More Than Net-Zero Promises

McDonald’s update comes as investors increasingly question whether companies can meet aggressive climate targets.

Over the last several years, many global companies have announced net-zero commitments tied to 2030 and 2050 timelines. However, supply chain emissions continue to challenge sectors such as food, aviation, shipping, and heavy industry.

Regulators are also increasing disclosure requirements.

Europe’s Corporate Sustainability Reporting Directive (CSRD) expands climate reporting rules for large companies. California also passed laws that will require many firms to disclose Scope 3 emissions later this decade.

Companies now compete not just on products and prices. They also focus on emissions performance and supply chain transparency.

McDonald’s Net-Zero Journey Is Entering Its Toughest Phase

McDonald’s decision to acknowledge likely delays in its 2030 supply chain target reflects a wider reality across corporate climate strategies.

Many companies can reduce operational emissions through renewable electricity and efficiency upgrades. But supply chain emissions are much harder because companies depend on global supplier networks and agricultural systems outside their direct control.

McDonald’s says it still plans to pursue net zero by 2050. The company’s long-term progress will likely depend on how quickly lower-carbon agriculture, renewable energy, methane reduction technologies, and sustainable logistics systems expand globally.

For the broader food industry, the message is clear: setting climate targets is only the first step. Transforming global food systems may prove far more difficult.

• READ MORE: Corporate Climate Pledges Surge 227% as SBTi Net Zero Standards Tighten

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