Artificial Intelligence: Emissions

Lord Offord of Garvel Excerpts

Wednesday 23rd April 2025 Lords Chamber

[Lord Vallance of Balham (Lab)]

I think it is the case that AI is going to be very important in reducing energy consumption across a number of industries. Estimates suggest that, even factoring in the increased amount of energy consumed by data centres and AI, the reductions in use as a result of applying AI to a number of industries and elsewhere could outweigh that increase. So this is a complex picture, where AI itself will be part of the solution.

[Lord Offord of Garvel (Con)]

My Lords, I thank the right reverend Prelate for bringing this up. As he has pointed out, and as has been mentioned in two or three questions already, these AI data centres are extraordinarily energy hungry. We think that, on a site with a perimeter similar to that of a call centre, a data centre could use 25 times more energy. So the Minister must explain how he thinks the UK can fully capitalise on this 21st-century opportunity with the most expensive energy. In fact, to pick up my noble friend’s point, our industrial electricity is actually five times more expensive than in the US and seven times more than in China. Could the Minister please work out whether this is just an academic question? We are unlikely to see many AI data centres with the level of energy prices that we have at the moment.

[Lord Vallance of Balham (Lab)]

The ability to become self-sufficient in energy is of course dependent on renewable energy, the price of which has come down dramatically since it was first introduced. Making sure that the UK is protected from the volatility of supply of energy from elsewhere is an important part of what this Government are doing. The energy supply from renewables will increase as we get towards a carbon-neutral position, which will also increase growth in terms of the technologies invented, developed and implemented in this country.