This article was originally published in The Hill Times.
Governments need to fully integrate AI electricity demand into renewable energy planning to ensure growth doesn’t come at the environment’s expense.
Artificial intelligence is reshaping our world at unprecedented speed- but its true test will be whether Canada can wield it to drive real, measurable progress in sustainability before the climate window closes. From optimizing energy use to protecting ecosystems, AI offers concrete solutions that can help meet Canada’s ambitious climate goals.
One of the most promising areas is energy management. AI algorithms optimize power grids by predicting demand and balancing loads in real time, reducing waste and enabling greater integration of renewables like wind and solar. Ontario’s Independent Electricity System Operator is already leveraging advanced forecasting models that benefit from AI-enhanced analytics. Companies like Montreal-based BrainBox AI are transforming commercial building operations with smart HVAC systems, cutting energy consumption and emissions.
In transportation, AI-driven route planning and traffic management reduce congestion and emissions. Toronto’s Waabi is pioneering autonomous trucking technology, aiming to make freight more efficient and less carbon intensive. Meanwhile, AI-powered fleet management solutions from startups such as Geotab support greener logistics by optimizing routes and reducing fuel use.
AI also plays a critical role in agriculture and land management. Precision farming tools from companies like Winnipeg’s Croptimistic Technology help farmers optimize irrigation and fertilizer application, boosting yields while minimizing environmental impact. These innovations are crucial as Canadian agriculture adapts to climate variability and resource constraints.
In environmental monitoring and conservation, AI analyzes satellite imagery and sensor data to track deforestation, wildlife populations, and water quality - enabling quicker, more accurate responses to environmental threats across Canada’s vast landscapes.
Canada’s government recognizes these opportunities. The AI Compute Access Fund, launched in December 2024, supports innovators developing AI applications with sustainability benefits. Additionally, the Canadian Artificial Intelligence Safety Institute, established in November 2024, ensures responsible AI development aligned with ethical and environmental standards.
But harnessing AI’s potential also requires asking tough questions: At what cost does this growth come? Hydro-Québec’s forecast predicts a 4.1 terawatt-hour surge in data center electricity demand by 2032 - enough to power 350,000 homes for a year. Without a firm commitment to powering AI infrastructure with clean energy, these gains risk being undercut by a larger carbon footprint.
Responsible AI isn’t just about what AI can do- it’s about how we develop and deploy it. Canada must embed sustainability at the core of AI policy and innovation. Passing the Artificial Intelligence and Data Act (AIDA) with clear sustainability mandates and transparency requirements will be essential. Investments should prioritize energy-efficient AI technologies and carbon-neutral data centers.
Provinces and the federal government need to fully integrate AI electricity demand into renewable energy planning to ensure growth doesn’t come at the environment’s expense. Creating public registries to track AI’s environmental impacts will foster accountability and guide better decisions.
Canada has the opportunity - and the responsibility - to lead the world by fusing AI innovation with a rigid environmental stewardship. Harnessing AI responsibly is not optional; it is imperative if Canada is to secure a sustainable, resilient future for generations to come.
Dr. Sarah Farahdel is a public scholar who earned her PhD in the department of information systems engineering at Concordia University, specializing in sustainability frameworks. She has acquired nearly 10 years of industry experience across various sectors.
