The IEA released a major new report titled Energy and AI, providing comprehensive data and analysis on AI’s impact on the energy sector.
Global electricity demand from data centres is projected to more than double by 2030, reaching about 945 TWh — equivalent to Japan’s current electricity consumption.
AI is the main driver behind the surge, with electricity demand from AI-optimised data centres expected to more than quadruple by 2030.
In the US, data centres are set to account for nearly half of electricity demand growth by 2030, surpassing total electricity used for manufacturing energy-intensive goods.
In advanced economies, data centres are expected to drive over 20 percent of electricity demand growth by 2030.
Renewables and natural gas are forecast to lead energy supply for growing data centre needs due to cost and availability.
In Japan, data centres could contribute to over half of electricity demand growth; in Malaysia, around one-fifth.
The report highlights uncertainties, including the pace of AI adoption, efficiency gains, and energy sector bottlenecks.
AI presents both risks and opportunities for energy security; cyberattacks on utilities have tripled in four years, but AI also strengthens cyber defense.
First-of-its-kind estimates provided for critical minerals demand from AI-powered data centres, amid concerns over concentrated global supply.
While rising electricity use may increase emissions, widespread AI adoption could help offset these through emission reductions and innovation in energy technologies like batteries and solar PV.
AI is expected to accelerate scientific discovery and innovation in clean energy.
The IEA urges countries to invest in power generation, upgrade grids, improve data centre efficiency, and foster collaboration among policy makers, tech firms, and the energy sector.
GreentechLead.com News Desk