The worldwide spread of artificial intelligence (AI) technology at a fast pace will lead to a steep increase in energy consumption by the end of the decade, which could equal the total electricity demand of Japan today, a new report by the International Energy Agency (IEA) says. But just half of this demand will be met by renewable sources.
The report goes on to note that by 2030, data processing—in particular, for AI—will consume more power in the United States alone than all the conventional energy-intensive industries such as steel, cement, and chemical manufacturing combined. Worldwide, electricity demand from data centres is projected to more than double, with AI-specific data centres leading the surge as their consumption is expected to more than quadruple.
Now, one data centre uses as much power as 100,000 houses. But the newer, more efficient ones being planned will be consuming up to 20 times as much.
Despite these daunting figures, the IEA report underscores that fears AI will destroy global climate goals may be exaggerated. The agency argues that AI could also prove to be essential for lowering emissions by increasing energy efficiency and optimizing system performance.
Fatih Birol, executive director of the IEA, stated: “With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time. AI is a tool, potentially an incredibly powerful one, but it is up to us – our societies, governments and companies – how we use it.”
AI could revolutionise electricity grid design, making it easier to integrate renewable sources like wind and solar, which are less predictable than traditional fossil fuel-based systems. Most grids in place today were developed around centralised power plants and are poorly adapted to handle intermittent supplies of energy.
In addition, AI can identify inefficiencies within industrial processes, optimize public transportation systems, and optimize city planning to reduce energy waste. In mining, for instance, AI can be used to identify and extract vital minerals necessary to build clean-energy technologies such as wind turbines, solar panels, and electric vehicles.
However, the IEA warns that without strong government policies and guidance, the energy demands of AI could overwhelm current systems and worsen environmental problems. To ensure AI’s growth aligns with climate objectives, proactive planning and strategic investment in clean energy will be crucial.