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Global electricity demand from data centres is set to double between now and the end of the decade, to 945 terawatt-hours (TWh), a new report by the IEA has found.
The IEA‘s Energy and AI report found that by 2030, data centres around the world will use more electricity that the entire consumption of Japan, with AI the most significant driver of this increase.
Electricity demand from AI-optimised data centres is projected to more than quadruple by 2030, it noted, with data centres set to drive more than 20% of the growth in electricity demand in advanced economies.
In the US, for example, more electricity will be used for processing data by 2030 than for manufacturing all energy-intensive goods combined, including aluminium, steel, cement and chemicals.
Wide-ranging impacts
“AI is one of the biggest stories in the energy world today – but until now, policy makers and markets lacked the tools to fully understand the wide-ranging impacts,” commented IEA executive director Fatih Birol.
“Global electricity demand from data centres is set to more than double over the next five years. […] The effects will be particularly strong in some countries. For example, in the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
Energy sources
According to the IEA, the burgeoning electricity requirement from data centres will require a ‘diverse range of energy’ sources, with renewables and natural gas set to take the lead due to their availability and cost-competitiveness.
‘While the increase in electricity demand for data centres is set to drive up emissions, this increase will be small in the context of the overall energy sector and could potentially be offset by emissions reductions enabled by AI if adoption of the technology is widespread,’ it added.
Security dynamics will also need to evolve, with AI contributing to an increase in the scale and sophistication of cyberattacks on energy infrastructure. At the same time, the IEA notes, AI is also becoming a ‘critical tool’ for energy companies to defend against such attacks.
Technological revolution
“With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time,” Dr Birol added. “AI is a tool, potentially an incredibly powerful one, but it is up to us – our societies, governments and companies – how we use it.
“The IEA will continue to provide the data, analysis and forums for dialogue to help policy makers and other stakeholders navigate the path ahead as the energy sector shapes the future of AI – and AI shapes the future of energy.”
