The U.S. is at risk of failing to meet the high energy demands of artificial intelligence technology, according to JPMorgan’s global head of sustainable solutions. The bank executive believes the U.S. will need to up its consideration of renewable energy sources like wind and solar to meet the energy demands for AI innovation.
In an interview with Bloomberg Television’s Tom Mackenzie, Chuka Umunna, JPMorgan Chase & Co.’s global head of sustainable solutions, said it is “difficult to conceive of a situation” in which the U.S. will meet its power needs without utilizing renewable sources.
JPMorgan warns the U.S. cannot meet energy needs
The demand for electricity within the U.S. continues to surge, driven by the rise of artificial intelligence, data centers, and the switch to electric transport and manufacturing. The expansion of these energy-intensive sectors has raised concerns over how the U.S. will sustain its economic ambitions.
“The scale of the tech industry’s growth makes renewables an essential part of the answer,” Umunna said.
The Biden administration previously proposed the adoption of renewables through tax incentives and the Inflation Reduction Act, but under President Donald Trump, renewable energy has been dismissed as a “joke” and wind turbines viewed as “pathetic.”
Trump described climate change as “the greatest con job ever perpetrated on the world.” The Trump administration is now pushing to expand fossil fuel production while regarding nuclear and geothermal energy as preferred low-carbon alternatives.
According to the U.S. Energy Information Administration (EIA), renewable sources accounted for roughly 23% of the country’s electricity generation in 2024, while fossil fuels made up more than 60%. Meeting the high power demand from AI data centers and electric vehicles will likely push that percentage higher.
Umunna cautioned that nuclear power projects take years to develop and bring online, and a delay in the development would cause serious problems given the pace of energy demand growth.
“The concern with nuclear is that it takes years to come on stream,” he said. “So renewables are an essential part of the answer.”
New investment wave pours into the US
Despite the Trump administration’s dismissal, investor sentiment toward renewable energy has rebounded this year.
“The nature of the debate has really changed,” Umunna said. “It’s not just about climate and the environment anymore, but about how you become self-sufficient.”
JPMorgan has committed to supporting industries that enhance energy resilience and long-term competitiveness. The bank announced plans on Monday to direct $1.5 trillion over the next decade into sectors that strengthen U.S. economic security and sustainability.
“Sustainability is interwoven with these issues of competitiveness and geopolitics,” Umunna explained. “The debate around what’s sustainable is no longer a binary one.”
Without significant investment in renewables, the U.S. risks facing both power shortages and higher energy costs, especially with the continued development of data centers, AI infrastructure, and electric vehicle charging networks.
Wind and solar are increasingly being considered valuable energy sources that are cost-efficient and can lead to energy independence.
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