Key points from the report:

• Data centre electricity consumption set to double by 2030, primarily due to AI.
• The US, Europe, and China will account for 85% of this demand.
• Electricity consumption for data centres could surpass Japan's total electricity usage.
• AI offers opportunities for enhanced energy efficiency despite rising demand.
• Major tech companies are seeking nuclear energy as a solution to their power needs.

The International Energy Agency (IEA) has projected a dramatic increase in global electricity consumption from data centres, forecasting that their power demand will more than double by 2030. This surge is expected to be primarily driven by artificial intelligence (AI) applications that require immense computing power. Currently, data centres account for approximately 1.5% of global electricity consumption, having seen a yearly increase of 12% over the past five years.

By 2030, data centres are estimated to consume around 945 terawatt hours (TWH), slightly exceeding Japan's annual electricity consumption today. AI technologies, especially generative AI, are identified as the main contributors to this rising demand. According to the report, the United States, Europe, and China together represent about 85% of global data centre electricity usage.

Major tech companies are already responding to their growing energy needs. For instance, Google has signed a deal to utilize electricity from small nuclear reactors, while Microsoft is set to draw energy from new reactors at the Three Mile Island nuclear site, infamous for America’s worst nuclear accident in 1979. Similarly, Amazon has committed to using nuclear energy for its own data centre operations.

Despite the increase in electricity demand, the IEA's report indicates that AI has significant potential to enhance energy production and consumption efficiency, which could ultimately reduce costs and emissions. However, this growth in energy demand comes with unavoidable environmental considerations, as carbon emissions from electricity consumption are projected to rise from 180 million tonnes today to 300 million tonnes by 2035.

The IEA highlighted that current energy sources primarily consist of coal (30%) but noted a shift towards greater utilization of renewable energy and natural gas due to their cost-effectiveness and availability. The rise of data centres thus poses new challenges for energy security and global emission targets as they are anticipated to account for around 3% of total global energy consumption by 2030.

With the rapid expansion of data centres, utility companies face the challenge of ensuring a sufficient power supply to accommodate this growth while managing costs and emissions. As the IEA's report suggests, navigating this landscape will require careful planning and adaptation in the energy sector.

For more on this report, visit TRT Global.