Saudi Aramco’s CEO Amin Nasser argues that the soaring electricity demand driven by AI data centers and electric vehicles will rely on fossil fuels rather than renewables. Speaking at a recent event, he warned that while the “icons of the transition are still stuck in first gear,” oil and gas remain the most reliable sources to meet the massive power needs of AI infrastructure .
The AI surge is reshaping the energy landscape. Data centers now consume about 2 % of global electricity, and that share is climbing fast. At the same time, AI models require rare minerals—lithium, cobalt, gallium, and nickel—to build the chips and batteries that keep the systems running. This “AI fossil fuel” dependency ties the digital revolution to mining and extraction, raising concerns about environmental and social impacts .
Aramco is betting on a hybrid approach. The company is leveraging AI to optimize existing oil‑and‑gas operations—re‑processing old seismic data, automating drilling, and cutting flaring by more than 50 %—while also exploring renewable projects and carbon‑capture technologies. This strategy aims to sustain fossil‑fuel production in the short term and gradually integrate cleaner energy solutions .
Critics point out that relying on fossil fuels for AI could lock in carbon‑intensive pathways, undermining climate goals. Others see AI as a double‑edged sword: it can accelerate energy efficiency and discovery of new materials, but without a rapid shift to renewables and responsible mineral sourcing, the technology’s environmental footprint will remain heavy .
