It's about the load generated by AI and carbon targets
Hi -- first things first, this is an article about a Morgan Stanley note. We're reporting that, it's not a conclusion we came to. It's us reporting an observation by market watchers that readers may find interesting.
Second, this isn't about the grid being dirty or not. It's about the increasing power demands of datacenters due to AI, which means datacenters are indirectly causing or taking up more share of CO2 output. That's worth pointing out, in that rather than just saying datacenters are using more power, this is pointing out one consequence of that. If it's all known to you already, great, but MS felt it needed a note and we felt like highlighting it.
This isn't about the climate or pollution or dirty energy. This is about carbon targets, whether those targets can be met if servers are helping emit more and more CO2, and financial / business opportunities for decarbonizing. This is Morgan Stanley after all.
I think you might be overthinking it.
C.