Data centre power demand to exceed Japan's use: IEA

Data centres in advanced economies will drive more than 20 per cent of the growth in electricity demand between now and 2030, putting the power sector in those economies back on a growth footing

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ARTIFICIAL intelligence (AI) has the potential to transform the energy sector in the coming decade, driving a surge in electricity demand from data centres around the world while also unlocking significant opportunities to cut costs, enhance competitiveness and reduce emissions, according to a new report from the International Energy Agency (IEA).

The 'Energy and Al' report offers comprehensive, data-driven global analysis to date on the growing connections between energy and AI.

It draws on new datasets and extensive consultation with policy makers, the tech sector, the energy industry and international experts.

The report projects that electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatthours (TWh), slightly more than the entire electricity consumption of Japan today.

And AI will be the most significant driver of this increase, with electricity demand from AIoptimised data centres projected to more than quadruple by 2030.

In the US, power consumption by data centres is on course to account for almost half of the growth in electricity demand between now and 2030.

Driven by AI use, the US economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminium, steel, cement and chemicals.