Tencent has outlined how it plans to address the rising energy demands associated with artificial intelligence, noting that AI workloads are increasing data-centre rack power demand by as much as tenfold.
In its Carbon Neutrality Mid-Term Report, the tech conglomerate said that this increased demand is ‘placing new pressure’ on electricity supply, cooling and infrastructure. However, it also noted that AI is a ‘powerful tool’ for improving efficiency and accelerating low-carbon innovation.
In the report, Tencent said that it is responding to the ‘AI-energy challenge’ by improving the efficiency of its computing infrastructure, aligning electricity demand with renewable energy availability, and applying AI and digital technologies to support decarbonisation beyond its own operations.
It said that it remains committed to achieving carbon neutrality across its own operations and supply chain by 2030.
‘Far greater potential’
“We are applying our digital and AI capabilities to cut emissions within our own infrastructure – and we believe AI holds far greater potential still: to accelerate low-carbon innovation, lift efficiency, and support broader environmental transformation in industries beyond our own,” commented Ma Huateng, Tencent chairman and CEO.
It highlighted its new its T-AIDC data-centre architecture, which it says can deliver power-supply efficiency of up to 98%, and is designed for high-density computing.
The Chinese firm is also exploring how AI and digital technologies can support emissions reduction efforts beyond its own operations – in steel production, for example, AI-driven scheduling and digital twins are being explored to improve energy use and support grid stability.
Elsewhere, its CarbonX Program supports technologies including carbon removal, carbon utilisation and long-duration energy storage, while its climate intelligence platform, TanLIVE, helps connect governments, investors and climate-tech stakeholders.
Renewable electricity
Renewable electricity consumption across Tencent’s operations increased from 22.0% in 2024 to 48.5% in 2025, while its owned data centres reached an 82.9% renewable electricity share, it noted. Since announcing its carbon neutrality commitment, the company has procured more than 6.5 billion kWh of green electricity.
‘By sharing both its progress and the work behind it, Tencent aims to contribute to a broader conversation about how the technology industry can manage the energy demands of AI while using digital innovation to support the transition to a lower-carbon economy,’ the company noted. Read more here and here.
