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AI Surge Drives Data Center Electricity Demand to Double by 2030, Report Warns

The International Energy Agency highlights rising energy consumption, CO2 emissions, and energy security challenges linked to AI-driven data center expansion.

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Overview

  • Data centers currently account for 1.5% of global electricity consumption, which has grown by 12% annually over the past five years.
  • The International Energy Agency projects that electricity demand from data centers will more than double by 2030, reaching 945 terawatt-hours—equivalent to Japan's current total electricity use.
  • CO2 emissions from data center operations are expected to increase from 180 million tonnes today to 300 million tonnes by 2035, although they will remain under 1.5% of total energy sector emissions.
  • The United States, Europe, and China collectively consume 85% of global data center electricity, with the U.S. expected to account for nearly half of future demand growth.
  • While AI innovations may lead to efficiency gains, the report emphasizes the urgent need for proactive energy policies to address supply challenges and mitigate environmental impacts.