Energy demand for data centers to double by 2030, Driven by AI: IEA | Current Affairs | Vision IAS
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Energy demand for data centers to double by 2030, Driven by AI: IEA

Posted 11 Apr 2025

2 min read

The International Energy Agency (IEA) has released a report examining all aspects of the links between energy and Artificial Intelligence (AI).

Key highlights of the report

  • Data Centre Energy Demand: The energy appetite of the world's data centres could reach around 945 terawatt-hours (TWh) by 2030.
    • Data centres provide infrastructure for training and deploying AI models.
  • Impact of AI on energy sector: AI can help optimize exploration and production of oil& gas, balancing electricity networks, improving industrial efficiency, and enhancing building systems.
An infographic titled "Challenges in AI-driven Energy Innovation" outlines four key issues with icons and brief descriptions:  Infrastructure Issue (icon: buildings with a gear) – The energy sector lags in AI adoption due to limited data access, inadequate digital infrastructure, skills shortage, and security concerns.  Supply Chain Vulnerabilities (icon: network of gears and trucks) – Data centers depend on critical minerals from few suppliers, leading to risks from extreme weather events and trade disruptions.  Cybersecurity Concerns (icon: shield and laptop) – Vulnerabilities increase due to electrification, digitalization, connectivity, and AI-driven cyberattacks.  AI Energy Paradox (icon: AI microchip) – AI’s high energy consumption contrasts with its potential benefits such as cutting emissions, optimizing electricity grids, and improving energy efficiency.
  • Role of Renewable energy: Half of global growth in data center demand is expected to be met by renewables, with natural gas and nuclear power also playing significant roles.

AI-Driven Innovation in Energy Sector:

  • Methane Emissions in Oil & Gas: AI reduces methane leaks by enhancing detection through satellite monitoring, enabling faster repairs.
  • Power Sector Emissions: AI improves efficiency at fossil fuel plants (e.g., optimizing natural gas plant conditions), lowering emissions.
  • Industry Emissions: AI optimizes manufacturing processes (e.g., improving cement production fuel mix), boosting energy efficiency by over 2% and cutting emissions.
  • Transport Emissions: AI enhances vehicle efficiency (e.g., better route planning, driving behavior), achieving 5-10% efficiency gains and reducing emissions.
  • Tags :
  • Energy
  • Artificial Intelligence
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