The confusing picture on AI’s energy demand continues with the IEA predicting a huge surge in the energy landscape.
According to a new IEA report Artificial intelligence is set to dramatically reshape the global energy landscape, driving demand from data centres while also offering major opportunities to cut costs, boost innovation and reduce emissions.
But earlier this week a report from Energy Intelligence seemed to downplay the needs of the AI revolution.
The IEA report, Energy and AI, offers they say the most comprehensive global analysis to date on the growing connections between AI and the energy sector.
It reveals electricity demand from data centres is set to more than double by 2030 to around 945 terawatt-hours (TWh) — more than Japan uses today.
AI will be the key driver of this power demand forecast to quadruple by the end of the decade.
In the US, AI-driven data centres are expected to account for nearly half of the country’s electricity demand growth between now and 2030 — more than all manufacturing of energy-intensive goods combined.
Across advanced economies, data centres are projected to be responsible for over 20% of electricity demand growth, ending years of stagnation in power consumption.
While the energy use of AI is soaring, the IEA notes it also offers major benefits, from accelerating scientific breakthroughs to helping energy firms manage grids more efficiently and defend against cyberattacks.
However, rising demand for electricity and critical minerals also presents new challenges.
This week the UK government launched its own AI energy council with 14 organisations involved including Ofgem, the networks and tech giants.
