Every summer, as temperatures climb, the demand for air conditioning rises with it. In many parts of the world, cooling has become essential to daily life – not just for comfort, but for health and safety. But most systems still run the way they did decades ago – with rigid controls and little connection to actual indoor and outdoor conditions.

Across many offices, shopping malls and homes worldwide, air conditioners still switch on without checking whether anyone’s in the room or whether outside temperatures have shifted. After all these technological advancements, they still cool blindly, wasting energy by default. Installing more of these systems isn’t progress – it locks in waste for decades to come: more grid stress, higher emissions and rising costs.  

This isn’t theory – it is happening now. Cooling already consumes 7% of global electricity. And with demand expected to triple by 2050, we’re heading straight into an energy and emissions crunch. In countries like India, cooling may account for nearly half of electricity use during peak periods. In Europe, from Germany to the Baltics, air conditioning is spreading fast due to hotter summers. But the conditioning systems often remain blind to context and isolated from the rest of the building infrastructure.

Regulatory failures 

From an energy systems perspective, that’s a massive oversight. But I see it as more than that – it is a regulatory failure that’s compounding the problem. We have the tools to manage cooling far more intelligently, but few policies exist to encourage adoption. Most climate strategies still treat cooling as a side issue.   

What I’d like to emphasise is that the market is moving, but policy isn’t keeping up. In the EU, full ESG (environmental, social and governance) audits won’t be mandatory until 2026 – and even then, how deeply cooling is assessed remains unclear. I don’t see many national climate strategies that include smart building intelligence in their frameworks. Regulations continue to focus on insulation, electrification and emissions at the source, as well as rising use of renewables – but not on how energy is actually managed inside buildings.   

That gap is more than just technical. It reflects a deeper, outdated assumption: that buildings are static structures with fixed energy needs. In reality, they’re constantly changing – occupancy shifts hour by hour, external temperatures fluctuate and energy prices can spike in real time.   

Modern buildings host dozens of overlapping systems, from lighting and HVAC (heating, ventilation and air conditioning) to security, that still operate in isolation. Cooling demand is now forcing us to confront that disconnect. Without integrated control and visibility across these systems, we’re flying blind – and wasting massive amounts of energy in the process.  

In Europe, reaching emissions targets often requires allocating up to 3% of annual revenue – a major strain for many building portfolios. Around one in five companies can’t commit that level of funding, which creates hesitation even among those who want to act. This is where smarter systems can shift the equation. I’ve worked with commercial property owners who are stuck in that exact dilemma – wanting progress without triggering a wave of capital expenditure. AI-based platforms help fill that gap.

Intelligent controls 

These tools don’t require ripping out and replacing existing infrastructure or performing deep renovations. Instead, they layer on intelligence – pulling in data from sensors, meters, weather feeds and occupancy patterns, then using machine learning to continuously adjust how the building breathes and runs. Ventilation slows when rooms are empty. Cooling ramps up before peak heat, not after. Systems stop competing with each other and start working in sync. In many cases, the result is 20–30% energy savings – and a payback period up to 10 times faster than traditional retrofits.  

Financial markets have already noticed the benefits. In Sweden, sustainable building projects are already receiving better loan terms through mechanisms such as green bonds. Banks understand that green buildings come with lower operating costs, better tenant appeal and lower risk exposure to future regulation. That translates directly into cheaper capital.  

In short, the transition is no longer just policy-driven – it’s now investor-led. While regulators play catch-up, investors are demanding energy-smart buildings today. They see the long-term risk of inaction and the competitive edge of future-proofed assets. That’s why companies are moving – because the business case is now undeniable.

These tools don’t require ripping out and replacing existing infrastructure or performing deep renovations. Instead, they layer on intelligence – pulling in data from sensors, meters, weather feeds and occupancy patterns, then using machine learning to continuously adjust how the building breathes and runs.

So, what needs to happen next? First, we need to change how we frame cooling. It’s not a seasonal afterthought – it directly affects public health, system efficiency and our ability to meet climate targets. Second, we must embed intelligence into every layer of building infrastructure – not just HVAC, but lighting, sensors, data systems and how they all interact. And third, policymakers need to stop rewarding checklists and start rewarding outcomes. Performance, integration and efficiency should be the standard, not the exception.  

Cooling demand isn’t going away, and climate scientists agree that we are past the point of no return. But how we further manage air conditioning will decide whether we stop inefficiency and rising emissions or lose decades to unnecessary waste. Smarter systems aren’t a future bet. They’re the most immediate, scalable solution we have.  

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.  

• Further reading: ‘How Europe’s cooling problem is heating up’.  As Europe experiences another sweltering summer, policymakers need to pay closer attention to the growing need for space cooling. Energy journalist Karolin Schaps investigates whether Europe can address its rising need for cooling down in a sustainable way without further straining the region’s electricity grids. 
• Extreme heat amplifies inequality, inflames food insecurity and pushes people further into poverty. We must respond by massively increasing access to low-carbon cooling, expanding passive cooling and cleaning up cooling technologies while boosting their efficiency. Find out how to keep cool without heating the planet.