Electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours (Twh), according to a new International Energy Agency (IEA) report.
Artificial intelligence (AI) will be the most significant driver and looks set 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, the Energy and AI report states.
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.
Global analyst group Wood Mackenzie warns that in the US alone, electricity consumption is rising by as much as 3% per year.
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.
In advanced economies more broadly, data centres are projected to drive more than 20% of the growth in electricity demand in the next five years, putting the power sector in those economies back on a growth footing after years of stagnating or declining demand in many of them.
A diverse range of energy sources will be tapped to meet data centres’ rising electricity needs, according to the report – though renewables and natural gas are set to take the lead due to their cost-competitiveness and availability in key markets.
AI could intensify some energy security strains while helping to address others, according to the report. Cyberattacks on energy utilities have tripled in the past four years and become more sophisticated because of AI.
At the same time, AI is becoming a critical tool for energy companies to defend against such attacks.
Another energy security concern relates to the expanding demand for critical minerals used in the equipment in the data centres that power AI.
This energy increase creates competition for industrial gases for the renewables that are needed to drive the energy transition – in particular for green hydrogen but also to improve the sustainability of power-hungry ASUs.
Sharon AI, a US-based high-performance computing company, and New Era Helium, a New Mexico-headquartered energy infrastructure firm, recently signed a letter of intent to acquire a 200-acre site in Ector County, Texas, for a 250MW Net Zero energy data centre.
The project shows one way ahead. It aims to power AI and high-performance computing while reducing its carbon footprint through integrated carbon capture technology.
