Data centres across the globe are set to more than double their electricity consumption by 2030, according to the International Energy Agency. The rapid rise, which will be largely driven by demand for artificial intelligence and other digital services, will see data centres consuming around 945 terawatt-hours in the next five years, surpassing Japan’s total […]

Data centres across the globe are set to more than double their electricity consumption by 2030, according to the International Energy Agency.

The rapid rise, which will be largely driven by demand for artificial intelligence and other digital services, will see data centres consuming around 945 terawatt-hours in the next five years, surpassing Japan’s total current electricity usage.

The United States is projected to account for the largest share of this increase, with data centres driving nearly half of the country’s electricity demand growth through 2030.

They are expected to consume more electricity than is used to produce aluminium, steel, cement, chemicals, and all other energy-intensive goods combined.

China will see the second-largest growth.

On a positive note, renewables and natural gases are expected to meet most of this demand, although a variety of energy sources will contribute.

Globally, data centres will account for about one-tenth of electricity demand growth to 2030 – less than that driven by industrial motors, residential and commercial air conditioning, or electric vehicles.

However, the impact varies by region. In emerging and developing economies, where electricity demand is rising rapidly, data centres represent about 5% of the increase.

In contrast, in advanced economies – where electricity demand has been largely flat for decades – data centres will account for more than 20% of demand growth by 2030.

Meanwhile, energy companies are also using AI to optimise energy and mineral supply, electricity generation and transmission, and energy consumption. The goals include lowering costs, enhancing reliability, and reducing emissions.

AI tools are also helping to manage increasingly complex, decentralised and digitalised electricity grids, the report said.

They can improve forecasting and integration of variable renewable sources, reducing curtailment and emissions. AI-driven fault detection can pinpoint issues more precisely, cutting outage durations by 30% to 50%.

 With the use of remote sensors and AI-based grid management, up to 175 gigawatts (GW) of additional transmission capacity could be unlocked – without the need to build new lines. That figure exceeds the projected increase in data centre power demand by 2030 under the IEA’s base scenario.

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