The International Energy Agency's (IEA) report "Energy and AI" explores the intersection of artificial intelligence (AI) and the energy sector, highlighting the technology's potential to transform energy production, consumption and distribution. The report is based on new global and regional modeling and datasets, as well as extensive consultation with governments, regulators, the tech sector, the energy industry and international experts.
AI could significantly increase electricity demand over the next decade, with data centers being a major contributor. In 2022, data centers accounted for about 1% of global electricity demand, with some countries like Ireland and the United States seeing a much higher share (over 20% and 10% respectively). Meeting this growing demand will require a mix of energy sources, including renewables, nuclear power and fossil fuels.
Large tech companies are already investing in clean electricity and new technologies like small modular reactors (SMRs) and long-duration energy storage. The report analyzes the implications of AI on energy security and emissions, emphasizing the need for sustainable practices to mitigate environmental impacts.
AI can optimize energy systems, improve efficiency and accelerate innovation in new energy technologies, such as more efficient batteries for electric vehicles and catalysts for hydrogen production. The IEA's report aims to fill the gap in understanding the energy-AI nexus, providing policymakers and stakeholders with tools to analyze both sides of this issue.
The agency has also launched a major initiative, "Energy for AI, and AI for Energy," to explore the opportunities and challenges ahead. This initiative highlights the importance of collaboration between the energy and tech sectors to ensure a sustainable and efficient energy future.
