According to a recent report by the International Energy Agency (IEA), the electricity consumption of data centers is projected to double by 2030 due to the widespread adoption of artificial intelligence (AI). This poses significant challenges to global energy security and carbon emission reduction goals. Data centers currently account for about 1.5% of global electricity consumption, with an average annual growth of 12% over the past five years. The rise of generative AI is further increasing the demand for massive computing power.
The United States, Europe, and China together account for approximately 85% of global data center electricity consumption. Major tech companies are already aware of this issue. Google signed an agreement last year to use small modular nuclear reactors to power its operations, supporting its AI ambitions. Microsoft also plans to utilize new reactors at the Three Mile Island nuclear plant, while Amazon has opted to contract for nuclear power to supply its data centers.
Image Source Note: Image generated by AI, using Midjourney.
The IEA predicts that if the current growth rate continues, data center electricity consumption will reach approximately 945 terawatt-hours (TWh) by 2030, equivalent to Japan's total electricity consumption today. The report notes that a 100-megawatt data center requires the same amount of electricity as 100,000 households, while new data centers could demand as much electricity as 2 million households.
The IEA points out that while the surge in data center electricity demand will increase carbon emissions from the current 180 million tons to 300 million tons, this still represents a small fraction of the projected 41.6 billion tons of global emissions. Currently, coal accounts for 30% of the electricity supply structure for data centers, but its share is expected to decrease due to the declining costs of renewable energy and natural gas.
The IEA also emphasizes that AI, while increasing electricity demand, could also revolutionize the energy sector within the next decade, helping to reduce costs, enhance competitiveness, and decrease emissions. To maintain its competitiveness in AI, the US government has launched the “National Energy Dominance Council” aimed at boosting electricity production.
