The world is at a technological tipping point that is redefining economies, political systems, and climate strategies. In his recent video, “The Decline of Europe (Final Chapter),” Marc Vidal discusses how artificial intelligence and technological dependence impact Europe’s future.
While other regions are making rapid progress, Europe seems stuck in a system that, instead of encouraging innovation, slows it down.
This video of Marc has inspired this content in two ways, on the one hand, the one related to the The infrastructure that drives the Artificial Intelligence. And on the other hand, the over-regulation imposed by the 2030 Agenda leads us to an electrification of our vehicle fleet and a huge dependence on third countries for the supply of batteries.
Artificial Intelligence and Technological Future: Problem or Energy Solution?
One of the most prominent issues is artificial intelligence (AI) impact on the global economy and its direct relationship with energy consumption. According to Eric Schmidt, former CEO of Google, the energy demand to power AI systems is so high that it could jeopardize current climate targets.
Currently, data centers already consume between 3% and 4% of the world’s energy, and it is projected that by 2030 this figure could soar to 25%. By 2027 alone, global electricity consumption related to AI systems is estimated to increase by 85-134 terawatt hours (TWh) per year, comparable to the annual consumption of countries such as the Netherlands or Sweden.
This exponential growth in energy consumption poses a challenge for sustainability. However, the same AI that drives this increase is also the key to solving the problem it creates. As technology evolves, innovative solutions are being developed to reduce energy consumption and create new, more efficient, and sustainable energy sources.
For example, specialized hardware such as new accelerators and high-performance super-chips are being designed to increase the performance of AI systems by a factor of 30 while consuming 25 times less power. In addition, 3D chips and advanced cooling techniques enable more efficient execution of AI tasks while reducing heat generation in data centers.
In addition, green algorithms are optimizing the use of AI, performing the same tasks with fewer computational steps, which means a significant reduction in energy consumption. These advances in software are as significant as those in hardware for improving the sustainability of AI.
AI is also transforming smart energy management, helping predict energy demand more accurately and enabling data centers to operate at peak renewable energy availability. Through smart grids, AI enables more efficient integration of renewable energy into power systems, optimizing the use of sources such as solar and wind power.
Artificial intelligence (AI) is revolutionizing the energy field, leading to potential game-changing discoveries. With its ability to analyze vast amounts of data, perform complex simulations, and design innovative materials, AI is accelerating the development of more efficient energy technologies.
A clear example of this is how AI is helping optimize advanced processes such as nuclear fusion . Imagine controlling incredibly complicated reactions in real-time: that’s where AI shines, making something so difficult and more manageable. It is also improving the efficiency of renewable sources such as solar and wind, and is even being used to investigate new theories of energy, such as the intriguing vacuum energy.
Although AI alone is not discovering new forms of energy, its role is key. It is as a tool that allows scientists to move faster and with greater precision witch could completely change how we generate and store energy.
European Dependence on Battery Production: A Shot in the Foot
One of the biggest problems facing Europe is its growing dependence on foreign manufacturers for the production of batteries, an essential component in the transition to electric vehicles. Major players in this market, such as CATL and BYD of China, and LG Energy Solution of South Korea, dominate the global supply of batteries for electric vehicles. In 2023, CATL captured 34% of the global market, supplying giants such as Tesla, Volkswagen, NIO and Fisker. Meanwhile, companies such as LG Energy Solution and BYD continue to expand their production capacity globally, especially in Europe and North America.
Although Europe has local initiatives such as Northvolt in Sweden, its production capacity remains small compared to these Asian giants. This creates a worrying paradox…
Despite European legislation pushing for the elimination of internal combustion vehicles to accelerate the adoption of electric vehicles, Europe does not control the production of the batteries needed for this transition. This means that while European automotive industries and citizens are being forced to adapt to this new reality, the continent is increasing its technological dependence on other regions. This situation creates a strategic risk: any disruption in the battery supply chain – whether due to geopolitical tensions or commercial decisions – could have serious consequences for the European economy and its automotive industry.
Instead of being an advantage, these political decisions could end up mortgaging the future of European citizens. Not only do they have to contend with insufficient charging infrastructure and the high cost of electric vehicles, but they also depend on third countries continuing to provide the essential components for their mobility. Europe, far from leading this transition, risks becoming a captive customer of Asian manufacturers, compromising its technological independence and global competitiveness.
How can Europe avoid stagnation?
Returning to Marc’s video, he underlines that Europe needs an urgent structural transformation. While the United States and China lead the way in technological investment and development, Europe seems trapped in a bureaucratic system that slows down its capacity for innovation. If Europe wants to maintain its global relevance, it must foster an environment where technological innovation can flourish and where climate and technology policies are not seen as opposites but complementary.
This implies a change in the way the economy is managed, and in the political mindset. Europe needs a bolder, more proactive vision that will propel it into the future. This includes reforming bureaucracy, encouraging collaboration between European countries and attracting investment in key sectors such as artificial intelligence, renewable energy and advanced technological production.
The future of Europe is at stake. While other countries are progressing rapidly, Europe must make strategic decisions to avoid being left behind in the technological and economic race. Artificial intelligence and clean energy may be the keys to a sustainable future. Still if swift and decisive action is not taken, the continent risks losing its influence on the global stage. Will Europe be able to restructure in time?
Please leave me your comments on Europe’s role in the technological future. What do you think it should do to stay competitive in a world increasingly dominated by artificial intelligence and renewable energy?
Have a good week!
Links of interest:
- Top 10 Battery Manufacturers in the World
- Artificial Intelligence (AI) in Energy and Power Market Report 2023: Sector to Reach $14.52 Billion by 2028 at a 24.6% CAGR
- ElectrificationRanked: The Top 10 EV Battery Manufacturers in 2023
- AI already uses as much energy as a small country. It’s only the beginning.
- AI and energy: Will AI help reduce emissions or increase demand? Here’s what to know
