Data centers are expected to consume more electricity than Japan by 2030, with their energy usage projected to more than double from 415 terawatt-hours (TWh) in 2024 to 945 TWh. This surge is largely driven by the growing demand for artificial intelligence (AI) and its energy-intensive requirements.
To mitigate the environmental impact, renewable energy sources like solar, wind, and hydro-generated energy are predicted to grow at an annual average rate of 22% up to 2030, potentially meeting nearly 50% of the increased demand. Low-carbon hydrogen could also play a crucial role in decarbonizing data centers, with a prototype device developed to produce clean water as a byproduct while generating low-cost green hydrogen.
Companies like Lego are investing in clean energy-run factories, with Lego's new factory in Vietnam expected to rely solely on clean energy from early 2026. However, data centers currently rely on coal for around 30% of their electricity, highlighting the need for a shift towards cleaner energy sources.
As the demand for data centers continues to grow, finding sustainable solutions will be crucial to reducing their environmental impact. Hydrogen hubs could be instrumental in the wider adoption of low-carbon fuels, and data centers may need to locate near these hubs or renewable energy generation sites to reduce transportation costs.
