Data centers around the world will consume as much electricity as Japan by 2030

Electricity demand in data centers worldwide is expected to more than double by 2030 to around 945 terawatt-hours (TWh), slightly higher than Japan’s total electricity consumption today . Artificial intelligence ( AI ) will be the main driver of this increase, with electricity demand from AI-optimized data centers projected to more than quadruple by 2030.

As Servimedia explained, these data are included in the special report “Energy and AI,” prepared by the International Energy Agency (IEA) and released this Thursday. This document offers the most comprehensive and data-driven global analysis to date on the growing connection between energy and artificial intelligence . The report is based on new data sets and extensive consultations with policymakers, the technology sector, the energy industry, and international experts.

AI has the potential to transform the energy sector over the next decade by driving a surge in electricity demand from data centers around the world, while opening up opportunities to reduce costs, improve competitiveness, and reduce emissions.

In the United States, data center energy consumption will account for nearly half of the growth in electricity demand between now and 2030. Driven by the use of artificial intelligence, the US economy is projected to consume more electricity by 2030 to process data than to manufacture all energy-intensive goods combined, such as aluminum, steel, cement, and chemicals.

A GREAT FUTURE CHALLENGE FOR ARAGON

All of this takes place in an international context in which Aragon is playing a key role as the main attraction for these information warehouses in Southern Europe. Around twenty information centers are already planned for this technological hub by large multinationals such as Microsoft, Amazon Web Services (AWS), Capital Energy, and Blackstone,  as well as national investments such as the one announced by the Azora Group.

Despite this strong commitment to data centers, which Minister Aagesen once called “the data center bubble,” some companies are already announcing measures to make this energy and water consumption as sustainable as possible . Microsoft, for example, has already stated that its data centers would not consume water for cooling , and AWS announced three projects at the beginning of the year to save this precious resource.

RICH COUNTRIES

Returning to the report, it predicts that these data campuses will drive more than 20% of electricity demand growth in wealthier countries through 2030 , allowing the energy sector in these economies to return to growth after years of stagnation or declining demand in many of them.

A wide range of energy sources will be used to meet the growing electricity needs of data centers, although renewable energy and natural gas are expected to take the lead due to their cost competitiveness and availability in key markets.

“AI is one of the most important issues in today’s energy landscape, but until now, policymakers and markets have lacked the tools to fully understand its broad impacts,” said IEA Executive Director Faith Briol,  adding that global electricity demand from data centers is expected to double to consume as much electricity as Japan does today.

“The effects will be particularly strong in some countries. For example, in the United States, data centers are on track to account for almost half of the growth in electricity demand ; in Japan, more than half; and in Malaysia, up to a fifth,” Birol emphasized.

UNCERTAINTIES AND QUESTIONS

On the other hand, the report highlights uncertainties ranging from the macroeconomic outlook to the speed with which AI will be adopted. It also raises questions about the capacity and productivity of artificial intelligence, the speed with which efficiency improvements will occur, and whether bottlenecks in the energy sector can be resolved.

According to the report, artificial intelligence could intensify some energy security tensions while helping to address others. Cyberattacks on energy utilities have tripled in the past four years and have become more sophisticated thanks to AI. At the same time, AI is becoming a crucial tool for energy companies to defend against these attacks. Another energy security concern relates to the growing demand for critical minerals used in the data center equipment that powers AI.

EMISSIONS

The report indicates that while increased electricity demand for data centers is expected to boost emissions, this increase will be small in the context of the overall energy sector and could be offset by the emissions reductions enabled by artificial intelligence if its adoption becomes widespread.

Furthermore, as AI becomes increasingly integral to scientific discovery, the report concludes that it could accelerate innovation in energy technologies such as batteries and solar photovoltaics . “With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time,” Birol added.

According to the report, countries that want to harness the potential of AI must accelerate new investments in power generation and grids, improve the efficiency and flexibility of data centers, and strengthen dialogue between policymakers, the technology sector, and the energy industry.