Technology companies invest billions in new AI data centers, consuming up to 5 million gallons of water daily for cooling. Despite technological advancements, the challenge persists, requiring regional coordination to manage water resources.
The efficiency of the EU’s energy system is hindered by high capital costs and distributional effects, affecting industrial growth and posing political challenges to European electrification. The growing local generation of wind and solar energy requires a European infrastructure planning system to guide private investments. Overcoming these effects will be crucial for an efficient electric system that combines decarbonization and competitiveness.
The World Energy Outlook report by the International Energy Agency prioritizes energy security over climate change due to global tensions over resources such as Russian gas. However, the need to invest in renewable and nuclear energy for the energy transition and system security is recognized.
Europe is experiencing a green technological rebirth, seeking opportunities and avoiding dependence on China. China, with its ambition to become an electric powerhouse, serves as an example and warning for the EU. The EU has solid capabilities in clean technologies and potential to lead in clean energy in the short term.
The Brookings report highlights that the United States relies on the world for 40 of the 50 critical minerals, essential for economy and security, and suggests that investments in mining in Africa can transform local economies and diversify American access to these resources.
