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AI boom to fuel surge in data center energy needs, IEA says

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The International Energy Agency (IEA) forecasts a dramatic surge in electricity demand from data centers by 2030, driven largely by the global boom in artificial intelligence
AI-optimized facilities alone are projected to quadruple their energy use, with overall data center consumption expected to exceed Japan’s current national electricity demand

🔭 The context: Data centers already account for approximately 1–1.5% of global electricity use
However, the exponential growth of AI models, cloud computing, and digital services is rapidly accelerating infrastructure expansion
These systems require not only high-performance processors but also extensive cooling and backup systems—amplifying their energy footprint

🌍 Why it matters for the planet: Without urgent action, the digital sector risks undermining global climate goals
The IEA warns that unchecked data center growth could offset gains from renewable energy deployment and energy efficiency
However, opportunities exist: optimizing energy use, adopting low-carbon cooling systems, and locating centers near renewable energy sources can mitigate impacts
The findings underscore the need to integrate digitalization and sustainability agendas

⏭️ What's next: Policymakers and industry leaders are under growing pressure to implement energy standards for data centers and support innovations in grid-friendly AI operations
Regulatory measures in the EU and U.S. may soon mandate emissions disclosures or efficiency benchmarks for tech companies
Meanwhile, the sector’s rising electricity demand could influence national energy planning, particularly in regions hosting large cloud infrastructure.

💬 One quote: “Data centers are at the heart of the digital economy, but their energy use must be managed wisely to avoid becoming a climate liability,” said Fatih Birol, Executive Director of the IEA.

📈 One stat: By 2030, global data center electricity consumption is expected to surpass 1,000 terawatt-hours—exceeding the total electricity use of Japan

See here detailed sustainability performance of companies like Microsoft, Cisco and Amazon Web Services

Click for more news covering the latest on energy grid 

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