Increasing Demand of Artificial Intelligence Influences M&A Opportunities in the Market

By Shubhendra Anand , 13 August, 2024

Artificial intelligence influences the demand for renewable energy sources in 2024

Renewables demand is increasing daily due to the transition to clean energy. Researchers claim that the surge in artificial intelligence gives new space for the growth of mergers and acquisitions (M&A) in the clean energy domain. The survey in the clean energy sector claims that the growth of artificial intelligence will increase the demand for renewables in 2024.

In the era of artificial intelligence, there is a growing affinity towards renewable energy sources. This is due to the need for huge power backups to support data centers in functioning with the help of artificial intelligence. The functioning of artificial intelligence requires a large amount of electricity. Hence, electricity can be produced with the help of renewables, such as wind and solar energy. It will have a lesser environmental impact compared to energy from fossil fuels. Renewables like wind and solar are gaining momentum in the mergers and acquisitions sector. Wind, solar, and battery companies are receiving benefits from the asset managers. It is due to the growing demand for renewables in light of the clean energy transition. Various companies in these three renewables sectors claim mergers and acquisitions will save their business in 2024. Along with that, energy, utilities, and resources are also a hopeful spot for mergers and acquisitions in 2024. In the following sector, electric vehicles tend to be an important sector responsible for the growth of M&A.

Experts state that mergers and acquisitions help reduce the cost of production in the renewables sectors, create larger operations in the renewable energy assets, increase the number of investments in the clean energy sector, and others shortly. Therefore, mergers and acquisitions help to explore the challenges in the clean energy sector and overcome them in 2024.