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AI’s Economic Benefits Surpass Emissions Concerns According to IMF

The International Monetary Fund (IMF) has recently highlighted the potential economic benefits of artificial intelligence (AI), projecting a global output boost of approximately 0.5% per year from 2025 to 2030. This growth is expected to surpass the environmental costs associated with higher carbon emissions from AI-driven data centers.

The report, showcased at the IMF’s spring meeting, emphasizes the need for equitable distribution of these economic gains while managing the adverse effects on our climate. The forecast indicates that AI’s contribution to GDP growth will outweigh the financial impacts of emissions, though it points out the necessity for policymakers and businesses to mitigate societal costs.

Energy Demands and Environmental Footprint

AI is set to escalate global electricity demand, potentially reaching 1,500 terawatt-hours (TWh) by 2030, mirroring the energy consumption of countries like India today.

The increasing demand for data processing capacity could result in higher greenhouse gas emissions, but the AI industry aims to offset these with advancements in renewable energy technologies.

AI: A Driver for Energy Efficiency?

Analysts suggest that AI could potentially reduce carbon emissions through improved energy efficiency, fostering advancements in low-carbon technologies across sectors such as power, food, and transport. Grantham Research Institute stresses the significance of strategic action from governments and industries to facilitate this transition.

The role of AI in the global economy continues to evolve, stirring debates not only about its economic potential but also its environmental impact.

Invest Cyprus Positions Island As A Stable European Base For Regional Expansion

Invest Cyprus used a London briefing on Tuesday to make its case for the island as a credible base for international business, financial services and wealth management, underscoring Cyprus’ role as a platform for regional growth.

Investors Are Looking Beyond Cost

The investment promotion agency, which partnered with FT Locations for the event, said the priorities of international companies are changing. Cost still matters, but it is no longer the decisive factor. Stability, regulatory credibility, access to talent and strong connectivity are increasingly shaping location decisions.

That shift, according to Invest Cyprus chairman Evgenios Evgeniou, plays directly to Cyprus’ strengths.

A European Base With Strategic Reach

Cyprus offers a combination that is difficult to replicate: membership in the European Union and eurozone, a common-law legal tradition, a multilingual international workforce and a geographic position linking Europe, the Middle East, North Africa and Asia.

For companies seeking to establish or expand operations, that mix can be especially valuable. In a business environment increasingly defined by regulation, technology and cross-border service delivery, jurisdictions that can offer stability and trust are gaining an edge.

Competing On Trust, Not Just Cost

Invest Cyprus argued that the island’s opportunity lies in competing on more than operating expenses. As financial services become more sophisticated and more technology-driven, the agency said Cyprus can serve as a platform for companies that want to operate efficiently while reaching markets well beyond the island itself.

“Our ambition is to compete beyond cost. On the combination of stability, access to talent and trust,” Evgeniou said.

A Broader Investment Proposition

The London discussion was part of a wider effort by Invest Cyprus to reposition the country in the minds of global investors. The message was clear: Cyprus is not simply an investment destination, but a base from which businesses can grow across Europe and into adjacent high-potential markets.

In an era when executives are reassessing geopolitical risk, regulatory certainty and workforce quality alongside price, that proposition is designed to resonate.

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