Data Centers: The Rising Energy Demand Behind Artificial Intelligence

Development and deployment of AI technologies worldwide is rapidly becoming a new, massive driver of energy consumption and emissions. A new report from the International Energy Agency (IEA) confirms a shocking number. Data centers are 100,000 home equal… right now! By 2030, these centers are expected to generate around 3% of global electricity consumption. According…

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Data Centers: The Rising Energy Demand Behind Artificial Intelligence

Development and deployment of AI technologies worldwide is rapidly becoming a new, massive driver of energy consumption and emissions. A new report from the International Energy Agency (IEA) confirms a shocking number. Data centers are 100,000 home equal… right now! By 2030, these centers are expected to generate around 3% of global electricity consumption. According to the report, the IEA believes that advancements in AI can drive improvements in energy efficiency and support other climate solutions. Environmentalist critics say the new report softens the growing reality of a dangerous unfolding energy crisis.

The Growing Energy Appetite of Data Centers

Data centers are projected to double their energy use over the next five years. Artificial intelligence may account for over half of that increase. As more industries and sectors start using AI technologies, the demand for large-scale computational power becomes even greater. Researcher Alex de Vries has called the IEA’s projections into question. He thinks that even those estimates are likely low—by a long shot.

Luxembourg’s energy minister, Claude Turmes, has similarly condemned the IEA report for whitewashing the gravity of the crisis. He warns that without strategic oversight, AI’s insatiable energy appetite will counteract its promise as a climate solution. Experts across the board agree that we need to act fast, and we need to act now. We can’t let energy-hogging data centers hijack the renewable future.

The Renewable Energy Shift

Yet the IEA has very good news despite these scary forecasts. By 2030, they project that at least half of the electricity used to power their data centers will be from renewable sources. This transition to a cleaner energy mix is vital for addressing the environmental impacts that come with the growing data center industry. The rest of the power supply will continue to rely on coal, nuclear and gas-fired power plants. Further, this reliance is alarming with respect to net carbon emissions.

The report warns that this rapid scale-up of data centers will produce 1.4% of the world’s combustion-based emissions within five years. This figure highlights the critical importance of developing new solutions to help the tech sector minimize their growing carbon footprints. Chronically Underfunded Experts are sounding the alarm! If the trends that we see today continue, data centers may soon have a carbon footprint as large as the entire global aviation industry.

The Future of Data Centers and AI

Down the road, hyperscale data centers will need as much as 20 times the energy of today’s data centers. This projection leaves many important sustainability and energy management questions on the table in a world that’s growing more dependent on data every day. The International Energy Agency recognizes AI’s potential to lead energy efficiency projects and tackle some of the most pressing climate change issues. It warns that without smart mitigation strategies and oversight, AI’s accelerating energy footprint will reverse many of these benefits.

Even as global energy usage from data centers keeps increasing, all stakeholders need to work to ensure that we harness these innovations to deliver sustainable progress. The unexpected, but not surprising, intersection of AI advancement and energy consumption advancing AI opens up incredible possibilities for the innovation and economy. Strong, intentional management will be the determining factor to learn how we can leverage AI’s benefits while reducing its environmental footprint.

Alexis Wang Avatar