Electricity consumption by data centres is set to more than double by 2030, with artificial intelligence (AI) applications driving the growth, according to the International Energy Agency (IEA). The report highlighted AI’s significant impact on both energy consumption and opportunities to improve energy efficiency. Data centres already represent 1.5% of global electricity consumption, and this is projected to increase rapidly, with AI being the primary driver.
Data centres in the United States, Europe, and China account for about 85% of global electricity use in this sector. The rise of generative AI, which demands massive computing power, will likely push data centre electricity consumption to 945 terawatt hours (TWH) by 2030, representing 3% of global energy use. The IEA also pointed out the potential for AI to optimize energy use, contributing to cost reductions and lower emissions in the long run.
To meet the growing demand for power, major tech companies like Google, Microsoft, and Amazon are turning to alternative energy sources, including small nuclear reactors. However, this surge in energy demand is expected to increase carbon emissions from data centres, with estimates predicting an increase from 180 million tonnes of CO2 today to 300 million tonnes by 2035.
Key Insights:
- AI is the primary driver of the increasing electricity consumption by data centres.
- Data centres will consume 3% of global energy by 2030.
- AI offers potential opportunities to improve energy efficiency and reduce emissions in the long term.
