Fuse Energy is preparing to launch the ENERGY token to meet the rising demand for energy driven by artificial intelligence.
Summary
- The SEC issued a no-action letter for Fuse’s Energy token launch
- AI is creating a rising demand for energy-intensive data centers
- Data centers could account for 20% of global energy needs by 2030
AI is driving rising energy demand, and crypto firms are taking note. On Tuesday, November 25, UK-based energy company Fuse Energy announced that it received a green light from the U.S. Securities and Exchange Commission for the launch of its Energy Dollars token, according to a press release shared with crypto.news.
“Our goal at Fuse Energy is to build an innovative and credible network, coordinating onchain incentives to build resiliency into our grid systems” said Alan Chang, CEO and Co-Founder of Fuse Energy.
The firm, co-founded by former Revolut executives, revealed that the SEC issued a no-action letter about the token launch. According to Fuse, the token will help scale the energy grid, which is needed due to rising demand for AI data centers and other uses.
“Receipt of this no-action letter underlines the SEC’s continued commitment to engage with crypto projects and provide clarity in the space. We hope that this paves a path forward for more teams to build truly useful blockchain products, tackling problems as significant as ours,” Alan Chang, Fuse Energy.
AI is creating a rising demand for energy
AI is contributing to a significant rise in energy demand. The demand for advanced AI models is rising, and with it, energy demand is increasing as well. Notably, newer large language models require exponentially more energy for both training and regular operations.
For this reason, AI is expected to consume more energy in the near future. So much so that, according to a report by the Penn State Institute for Energy and the Environment, data centers could account for 20% of global energy use by 2030–2035.
