Artificial intelligence (AI) and digitalization have potential to advance inclusive development — but it needs to be supported by energy-efficient infrastructure and smart financing.
The UNEP Copenhagen Climate Centre has published a new policy brief examining how emerging economies can manage the growing energy footprint of IA and data centres through targeted business models and financial strategies.
Read the full policy brief here: Business Models and Finance to Enhance Energy Efficiency in AI and Data Centres in Emerging Economies
A Spanish version of the policy brief will be available soon.
As digital infrastructure expands rapidly, particularly across Latin America, Africa, and Asia, energy demand is accelerating; threatening to outpace power system capacity and undermine climate ambitions. According to the International Energy Agency, global data centres consumed around 460 TWh in 2022, roughly 2% of global electricity demand. With AI adoption soaring, this could more than double by 2026, driven by energy-intensive model training and inference.
Innovative business models for energy efficiency
In emerging economies, where power systems often face issues of access, reliability, and affordability, this trend threatens to overwhelm infrastructure, increase costs, and divert energy from other essential uses. The policy brief highlights energy efficiency solutions — including advanced cooling systems, retrofits, and AI-optimized operations — that can dramatically reduce energy use but remain underutilized due to regulatory, financial, and technical barriers.
To address these challenges, the brief presents innovative business models such as Energy-as-a-Service, AI-as-a-Service, and outcome-based pricing. These models offer scalable pathways to reduce energy intensity while enabling continued digital expansion. The publication also outlines financial instruments — including green bonds, Super ESCOs, and blended finance — that are essential to unlock investment in efficient digital infrastructure.
Governments and development institutions have a key role in this transition. The brief calls for stronger integration of energy efficiency into national digital strategies, efforts to de-risk investment, and capacity-building to support sustainable AI infrastructure.