In an era of rapid technological disruption and discontinuity in sustainable technologies, new challenges and opportunities are always on the horizon. Deloitte Sustainability Digital Assets and Offerings Leader John Mennel shared his vision for what is in the technological pipeline, and what its implications are for the Mountain West and its sustainability goals.
Four years ago, Mr. John Mennel, Deloitte’s Sustainability Digital Assets and Offerings Leader, hiked the length of the Colorado Trail and identified three parallels between long-distance hiking and long-term economic growth: understanding the landscape, navigating uncertainty, and maintaining sustained energy.
Despite the inherent uncertainties of the future, Mr. Mennel shared three "good bets" that will significantly influence tomorrow's economy. The first is that AI will transform industries, serving as a major productivity enhancer even at a high cost. Deloitte projects that power demand from AI data centers will increase from 60-70 TWh (Terawatt-hour) to 130-140 TWh by 2030—more than quadruple California’s annual energy consumption. Utilities are already forecasting significant demand growth, with up to 40 percent driven by AI data centers. Even if AI models become more efficient, the ongoing growth in power demand is likely to persist, especially as more data is processed. Investment in data centers is also on the rise, with $35.1 billion allocated for construction in 2024—greater than the amount spent on hospitals.
Although AI's resource demands raise environmental concerns, Mr. Mennel remains optimistic about its potential benefits. He cited applications in weather modeling, grid management, and transportation, such as AI-assisted airline pilots reducing contrails responsible for a significant portion of airline emissions. AI is also advancing materials science, enabling better energy creation and storage technologies, ultimately benefiting environmental preservation.
Mr. Mennel’s second "good bet" is that combining geospatial technologies and AI will revolutionize productivity across industries. Deloitte predicts that by 2032, the number of Earth-observation satellites will triple to 4,000, collecting data only AI can effectively analyze. The economic impact of this capability could exceed $700 billion by 2030 if deployed at scale, enhancing precision irrigation, traffic management, and methane leak mitigation.
“AI has the potential to usher in a new era of environmental sustainability.”
Mr. John Mennel
Digital Assets and Offerings Leader
Deloitte Sustainability
Lastly, Mr. Mennel noted the race to power these technological advancements and the need for novel energy solutions to meet growing power demands, particularly through advanced nuclear technologies. Innovation in fission reactor designs, small modular reactors (SMRs), and even fusion power can support the energy needs of these power-hungry innovations, alongside an important role for renewable energy as storage improves.
In conclusion, Mr. Mennel outlined key opportunities for the Mountain West to capitalize on these trends. First, investing in diverse skills is essential given changing demands, particularly in clean energy, where jobs accounted for half of all energy jobs created in 2023, and demand for nuclear expertise has surged by 270 percent. Additionally, as AI becomes ubiquitous, cultivating soft skills will help workers stand out. Second, he urged the importance of preserving the Mountain West’s vibrant cities and natural beauty, which remain significant competitive advantages that must be recognized and protected.
