Power Couple? AI Growth and Renewable Energy Investment
arXiv:2603.26678v1 Announce Type: new Abstract: AI and renewable energy are increasingly framed as a “power couple” — the idea that surging AI electricity demand will accelerate clean-energy investment — yet concerns persist that AI will instead entrench fossil-fuel carbon lock-in. We reconcile these views by modeling the equilibrium interaction between AI growth and renewable investment. In a parsimonious game, a policymaker invests in renewable capacity available to AI and an AI developer chooses capability; the equilibrium depends on […]