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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

One thing about new innovations is that they almost always come with unintended consequences. You’ve seen news about the latest AI system DeepSeek that has rattled the entire AI industry. Most of that disruption is based on the massive cost differential between the major AI systems costing billions and DeepSeek that cost less than $6 million. Some of these reports also discuss DeepSeek’s reduced energy requirements – which should be a good thing.

But hold on a minute – there may be hidden dark sides to that.


For example, if big tech replicates the foundations of DeepSeek, will they rethink their investments in green energy and carbon reduction projects?


The stock market thinks so – last week, doubts about the “projected surge in U.S. electricity demand and tech spending” was being priced in at energy companies that made arrangements with tech companies.  This has major implications for everyone – not only in terms of reducing emissions for powering data centers, but across the economy in general. Power generation and emissions management solutions funded by big tech are test cases that, if technically and commercially successful, are expected to be implemented more widely.

If big tech reduces their energy demands by replicating DeepSeek, those companies may not feel pressured to make planned 8- and 9-figure spend in green energy and carbon reduction. That may have unintended consequences for the rest of us.

Members can learn more about climate risks here and our checklist on Identifying & Updating Climate Risks and Uncertainties.

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Photo credit: asaffsouza – stock.adobe.com

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile