Energy group: AI growth to surge global energy demands

Apr 10

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Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Jake Larsen (Video Editor), Ali Caldwell (Graphics)

Global electricity consumption is projected to rise sharply over the next decade due to the rapid growth of AI. Data centers supporting AI systems are expected to consume more power than Japan by 2030.
In the U.S., data centers are projected to account for nearly half of the country’s electricity demand growth through 2030, potentially surpassing the combined energy consumption of processing aluminum, steel, cement and chemicals.
Emissions from global data centers could rise significantly, but the IEA believes the broader deployment of AI technologies could lead to emissions reductions that outweigh the increase from data centers.

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Global electricity consumption is on track to rise sharply over the next decade, largely due to the rapid growth of artificial intelligence (AI), according to a new report by the International Energy Agency (IEA).

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“AI is coming. In many sectors, it is already here. This has major consequences for the global energy sector,” the IEA report states. “There is no AI without energy–specifically electricity. At the same time, AI has the potential to transform the sector’s future.”

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How much energy is AI projected to use?

The IEA projects that by 2030, electricity demand from the world’s data centers, which support AI systems and cloud computing infrastructure, will more than double. The report states data centers will consume more power than the entire nation of Japan. Meanwhile, those data centers optimized for AI will see their energy use quadruple by the end of the decade.

A typical AI-focused data center can use as much power as 100,000 homes, and some of the largest currently under construction may consume up to 20 times more than that. Since 2017, energy needs from data centers have grown four times faster than overall global electricity demand and now account for approximately 1.5% of worldwide power usage.

How will data centers impact US energy demand?

In the United States, data centers are projected to account for nearly half of the country’s electricity demand growth through 2030. By then, the electricity used for American AI-related data processing needs is expected to surpass the combined energy consumption of processing the nation’s aluminum, steel, cement and chemicals.

The geographic concentration of data centers also raises concerns. Developers are building about 50% of new U.S. facilities in already-established regional hubs, potentially leading to local energy bottlenecks and infrastructure challenges.

How will data centers impact the environment?

The IEA estimates that emissions from global data centers could rise from 180 million tons of CO₂ today to 300 million tons by 2035 — comparable to the total annual greenhouse gases produced by nearly 70 million gasoline-powered cars.

What happens next?

Despite these figures, the IEA notes concerns over AI accelerating climate change seem to be “overstated.” The agency believes the broader deployment of AI technologies could lead to “emissions reductions that are far larger” than those created from data centers.

Tags: Artificial Intelligence, Energy, International Energy Agency

ARTIFICIAL INTELLIGENCE IS EXPECTED TO CAUSE A MAJOR SPIKE IN GLOBAL ELECTRICITY DEMANDS.

ACCORDING TO THE INTERNATIONAL ENERGY AGENCY-

ELECTRICITY DEMAND FROM THE DATA CENTERS POWERING THESE AI OPERATIONS AND OTHER TECHNOLOGICAL APPLICATIONS IS GOING TO MORE THAN DOUBLE BY THE END OF THIS DECADE.

COME 2030, THESE FACILITIES WILL REQUIRE MORE ENERGY THAN THE ENTIRE NATION OF JAPAN-

WITH THOSE THAT ARE OPTIMIZED FOR AI PROJECTED TO QUADRUPLE THEIR ENERGY USE.

A TYPICAL AI-FOCUSED DATA CENTER CAN CONSUME AS MUCH ELECTRICITY AS 100,000 HOUSEHOLDS-

AND SOME OF THE LARGEST CURRENTLY UNDER CONSTRUCTION COULD USE UP TO 20 TIMES MORE THAN THAT.

SINCE 2017, THE ENERGY NEED OF DATA CENTERS HAVE GROWN FOUR TIMES FASTER THAN OVERALL ELECTRICITY DEMAND-

NOW ACCOUNTING FOR 1.5 PERCENT OF THE WORLD’S POWER USE.

IN THE UNITED STATES, DATA CENTERS ARE PROJECTED TO DRIVE NEARLY HALF OF THE COUNTRY’S ELECTRICITY DEMAND GROWTH THROUGH 2030.

BY THEN, ELECTRICITY USED FOR AI-DRIVEN DATA PROCESSING MAY EXCEED THE COMBINED CONSUMPTION OF THE U.S. ALUMINIUM, STEEL, CEMENT, AND CHEMICAL SECTORS.

ADDITIONALLY, THE CONCENTRATION OF THESE FACILITIES MAY POSE MORE CHALLENGES.

ABOUT 50% OF NEW U.S. DATA CENTERS ARE BEING DEVELOPED IN ALREADY-ESTABLISHED REGIONAL CLUSTERS-

WHICH COULD LEAD TO LOCAL ENERGY BOTTLENECKS.

DATA CENTERS ARE ALSO EXPECTED TO BECOME A MAJOR SOURCE OF EMISSIONS, RISING FROM 180 MILLION TONS OF CO₂ TODAY TO 300 MILLION TONS IN 2035-

EQUIVALENT TO THE AMOUNT OF GREENHOUSE GASES GENERATED BY NEARLY 70 MILLION GASOLINE-POWERED CARS.

HOWEVER, THE IEA NOTED CONCERNS OVER AI ACCELERATING CLIMATE CHANGE APPEAR TO BE QUOTE “OVERSTATED”-

AND THAT THE WIDESPREAD ADOPTION OF THIS TECHNOLOGY COULD LEAD TO EMISSIONS REDUCTIONS THAT ARE FAR LARGER THAN THOSE CREATED FROM DATA CENTERS.

FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER.