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AI-Driven Data Centers to Double Global Electricity Demand by 2030, IEA Reports

The rapid expansion of AI applications is straining power grids, raising environmental concerns, and highlighting the need for infrastructure upgrades and renewable energy solutions.

Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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The role of nuclear power in supplying electricity to data centers is projected to grow by 2035. (Representational image)
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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.