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Artificial intelligence has the potential to transform the energy sector in the coming decade – driving a surge in electricity demand from data centres around the world while also unlocking significant opportunities to cut costs, enhance competitiveness and reduce emissions.

The IEA’s special report, Energy and AI, offers the most comprehensive global analysis to date on this topic.
The report projects that electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours, slightly more than the entire electricity consumption of Japan today.

AI will be the most significant driver of this increase, with electricity demand from AI-optimised data centres projected to more than quadruple by 2030.

Data centre electricity consumption by region, Base Case, 2020-2030
A diverse range of energy sources will be tapped to meet data centres’ rising electricity needs – though renewables and natural gas are set to take the lead due to their cost-competitiveness and availability in key markets.

Sources of global electricity generation for data centres, Base Case, 2020-2035
The report also explores how AI solutions can help tackle challenges that arise as the energy system becomes increasingly electrified, digitalised and decentralised.

It estimates that existing AI applications, if widely adopted by the electricity sector, could save up to $110 billion annually and unlock 175 gigawatts of transmission capacity.

Potential energy savings by sector in the Widespread Adoption Case, 2035
As the tech sector and energy industry become more intertwined than ever before, the IEA will continue to provide quality data and robust analysis to inform decision makers.

It will also facilitate ongoing dialogue and collaboration among stakeholders, which is essential to maximise benefits and reduce risks.
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Data centre electricity consumption by region, Base Case, 2020-2030

Sources of global electricity generation for data centres, Base Case, 2020-2035

Potential energy savings by sector in the Widespread Adoption Case, 2035

Learn more about Energy and AI

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What the data centre and AI boom could mean for the energy sector