11 July 2024
Market Round-Up
Google, the world’s fourth largest technology company, has reported a 48% increase in its greenhouse gas emissions since 2019, according to its annual environmental report. This surge was primarily driven by power-hungry data centres, required for the development of AI (artificial intelligence) technology. Microsoft has experienced a similar trend, with its data centre build-out contributing to a 30% increase in emissions since 2020. The results have thrown into question Google’s 2030 ‘net zero’ commitment, as well as the ability of the broader energy network to cope with increased energy demand going forward.
Currently, global data centres account for around 1-1.3% of global electricity demand, with the International Energy Agency estimating that this could double by 2026. This trend, along with the green energy transition, has led to a rise in energy infrastructure spending. National Grid, for instance, has raised £6.8bn this year, via a rights issue, to help fund £60bn in energy network investments over the next five years.
Google stressed the potentially crucial role AI could play in leading the net-zero transition, by improving analysis, monitoring and forecasting used in climate mitigation strategies, and also by enhancing efficiency and optimisation across the economy. However, AI still has a long way to go before it can fulfill this expectation.
Here in the UK, British drugmaker GlaxoSmithKline has signed a €400m licensing agreement with German vaccine company, CureVac. Since 2020, the two biopharmaceutical firms have collaborated on the development of COVID-19 and flu vaccines, but the deal will now see GSK take full control of this operation.
The agreement stipulates GSK’s rights to develop, produce and commercialise mRNA candidate vaccines for influenza and COVID-19, including combinations of both. In return, CureVac will be entitled to a further €1.05bn in sales milestone payments and royalties, bringing the deal’s total prospective value up to €1.4bn.
Tony Wood, Chief Scientific Officer at GSK, said: “With this new agreement, we will apply GSK’s capabilities, partnerships and intellectual property to CureVac’s technology, to deliver these promising vaccines at pace.” If approved, the new vaccine offerings could help GSK compete against rivals like Moderna and Pfizer in the mRNA space. Meanwhile, the €400m cash injection should help strengthen CureVac’s financial position and allow it to redirect its effort towards new cancer treatments, such as its CVGBM candidate vaccine.
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