Overview
- The International Energy Agency (IEA) projects data center electricity consumption will exceed 945 terawatt-hours by 2030, comparable to Japan's current annual usage.
- AI-specific operations are forecast to quadruple energy demand, making artificial intelligence the primary driver of this surge.
- Grid infrastructure challenges are intensifying, with 20% of planned data centers at risk of delays due to insufficient power generation and transmission capacity.
- Environmental concerns are mounting as fossil fuels remain a significant power source for data centers, particularly in East Asia's AI chip manufacturing hubs.
- While AI holds potential to improve energy efficiency and reduce emissions, the IEA emphasizes that enabling policies and investments are critical to achieving these benefits.