Monday 04 May 2026 11:12 am  |  Updated:  Monday 04 May 2026 11:22 am

UK carbon markets stand to get an AI boost

By: Chris Hayward

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The connection between AI growth and carbon market demand is one the UK is well positioned to act on, writes Chris Hayward

AI is growing rapidly, and the UK has a clear interest in being part of that growth. The AI Opportunities Action Plan reflects an ambition to position Britain competitively in AI infrastructure and adoption. That is the right instinct.

But ambition comes with trade-offs worth examining. Electricity demand from data centres rose by 17 per cent in 2025 and demand is only going one way: AI’s global energy use is expected to double by 2030. As compute scales, emissions tend to follow. At the same time, many of the largest technology companies have made net zero commitments – as have governments, including our own. 

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This tension between growth and sustainability is not........

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