Artificial intelligence is revolutionizing the world, but it is also rocking power grids around the world. Schneider Electric (SU.PA, SBGSY) CEO Peter Herweck sits down with Julie Hyman to address the energy demand needs from AI as more companies seek to optimize their data center infrastructures.

"If you look at the data centers worldwide today, they use roughly 1.3 to 2% of the global energy. And we anticipate this to double until 2030," Herweck tells Yahoo Finance "So there is quite a need... So it is big, but it is companies like ourselves, we furnish the electrical and the cooling management and data centers. In fact, we're probably the largest in the world in this regard. And go from grid to chip and chip to cool. And it requires to find sustainable ways of doing it."

Herweck emphasizes the significant role renewables will have in filling these gaps as energy wants and consumption climb.

"The data center expansion, in particular, when we're talking generative AI, you have more power requirement. And a lot of the companies want to do this in a sustainable way with little CO2. So they go to geographies where there is a lot of power, a lot of land available because you need to have the land and the power usage. So we would see data centers being built in geographies that we haven't seen before to learn those models, be it in Australia, be it in Japan, be it in Singapore, in the Middle East, in countries in Europe that you wouldn't think about..."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.