The surge in artificial intelligence (AI) is expected to significantly increase electricity demand from data centers, with global consumption projected to more than double by 2030, reaching approximately 945 terawatt-hours (TWh). This is equivalent to Japan's current electricity consumption.
AI is becoming increasingly integral to various industries, leading to a significant rise in data center electricity consumption. The number of data centers is expanding rapidly, driven by growing demand for cloud computing, storage, and processing power. AI applications, such as machine learning and natural language processing, require substantial computational resources, leading to increased energy consumption.
In the United States, data centers are expected to account for almost half of the growth in electricity demand between now and 2030. In Japan, data centers are projected to drive more than half of the growth in electricity demand during the same period. In Malaysia, data centers are expected to account for one-fifth of the growth in electricity demand.
The International Energy Agency (IEA) emphasizes the need for a diverse energy portfolio to meet the growing demand, with renewables and natural gas expected to play a significant role. Additionally, the IEA highlights the importance of improving energy efficiency and reducing emissions in the energy sector to mitigate the environmental impact of the increasing electricity demand.
