The Energy Dilemma of the Digital Age

It may seem like the reign of fossil fuels for energy is finally coming to an end. But is it really?

Investments in renewable energy are breaking records. Electric vehicles are spreading fast. The rise of artificial intelligence suggests a new beginning. It may seem like the reign of fossil fuels is finally coming to an end. But is it really?

In 2024, 80% of global energy supply still came from fossil fuels. Ten years ago, this figure was 82%. After all the noise and billions of dollars invested, only a two-point decline was achieved in a decade. In other words, while green energy is expanding, it has not managed to dethrone fossil dominance.

Because the issue is complex. Rising demand, political agendas, and the enormous energy appetite of the new digital economy make the picture even more intractable.

Coal’s Stubborn Dominance

Coal, the chief culprit of the climate crisis, is still on top. In 2024, it hit a record 8.8 billion tons. It is expected to stay at similar levels in 2025. While China and India show some decline, the U.S. saw a 10% increase due to higher electricity demand and gas prices. The EU remains flat. According to the International Energy Agency (IEA), a marginal global decline is expected in 2026. That would not mean coal has disappeared, only that it has been temporarily restrained.

EV sales are soaring, yet rising demand in Asia keeps oil high. Likewise, natural gas use is falling in Europe and Japan but climbing in Asia. Methane leaks make this so-called “transition fuel” highly controversial for the climate.

With Trump’s second term, the balance has shifted back in favor of fossil fuels in the U.S. Regulations easing coal and oil production have been reinstated, and the Paris Agreement goals have been deprioritized. In short, while the world talks about phasing out fossil fuels, its largest economy is making a sharp U-turn. This affects not only emissions, but also prices and trade flows.

The Insatiable Appetite of Data Centers

The most critical development in the energy equation is the surging demand of data centers. Today, they consume around 1.5% of global electricity, and by next year, this is expected to double. As they expand, the strain on power grids intensifies.

In the U.S., demand rose significantly. Plans for 100 GW of new gas power plants have been launched just to meet the needs of data centers. That figure is roughly three-quarters of Turkey’s entire installed capacity. In effect, the AI revolution is creating a backdoor that could slow the renewable transition.

And it’s not only about electricity. The cooling systems of data centers have pushed water consumption to dramatic levels. The infrastructure cost of the AI era is now a serious threat to global climate goals.

Are Renewable Really Replacing Fossils?

According to The Guardian, in 2025, 90% of new demand growth will be met by renewable. China’s case is particularly striking. Coal’s share in electricity generation there dropped from 73% in 2016 to 51% in 2025. Renewable capacity is booming. But the critical question remains: are renewable replacing fossil fuels, or are they just meeting extra demand? So far, the data suggests the latter.

Another risk emerges in infrastructure. While more than $1 trillion is invested in generation capacity, only about $400 billion goes into grid upgrades. This widening gap threatens energy security.

Conclusion: An Energy Future in a Double Vise

On one hand, the scientific reality is clear: once the 1.5°C threshold is permanently breached, irreversible chain effects will start. On the other hand, political, economic, and technological dynamics complicate the picture. The growth of data centers places a new burden on energy systems and, ironically, reopens the door to fossil infrastructure.

This tells us one thing: the energy transition is a war fought on two fronts. The first is against fossil fuels—without eliminating coal and oil, no climate target is realistic. The second concerns the new demand of the digital age. The insatiable appetite of data centers must be met with sustainable solutions. Nuclear energy—especially small modular reactors—offers hope, albeit with risks that need careful consideration.

Green investments matter. But if fossil dependence continues at the same pace, the energy transition will remain only a showcase. Real transformation begins only when fossil fuels are phased out and the digital economy’s energy hunger is sustainably managed.

Fatih Birol, head of the IEA, issues a stark warning. He states, “Saying climate change is inevitable and giving up would be a recipe for disaster for the world.”

Humanity will either break free from this double vise. Fossil fuels’ stubbornness and algorithms’ limitless hunger contribute to this challenge. Otherwise, humanity will burn not only its future, but also its now, with its own hands.