The report estimates that global electricity usage by AI-optimized data centers will increase to 945 terawatt-hours annually by 2030, up from current levels. This growth is almost three times the total electricity consumption of the United Kingdom in 2023. Despite the sharp rise, data centers are expected to account for just 3% of the world’s electricity use, showcasing the efficiency gains made in server technologies and data infrastructure.

The IEA stresses that AI’s energy demand poses significant environmental challenges, particularly in regions heavily reliant on fossil fuels for electricity generation. If left unchecked, emissions from data centers could reach 300 million metric tons of CO2 annually by 2035, contributing to the global climate crisis. However, the IEA also highlights AI’s potential to act as a force for sustainability. By enabling more efficient energy systems, AI could help reduce overall emissions by approximately 5%—an encouraging figure that underscores the dual nature of AI’s impact.

To address the environmental implications of AI growth, the IEA advocates for significant policy and technological interventions. These include optimizing energy efficiency in data centers, integrating renewable energy sources, and advancing waste heat recovery systems. Additionally, governments and corporations must collaborate to ensure a sustainable AI ecosystem by incentivizing green technologies and enforcing stringent environmental standards.

The report calls attention to the critical role of innovation in balancing AI’s burgeoning energy requirements with global net-zero goals. For example, smarter grid management, predictive maintenance, and AI-driven resource allocation can all contribute to minimizing waste and reducing energy demand. Moreover, localization strategies—such as situating data centers near renewable energy hubs—are vital for ensuring sustainability.

As AI continues to transform industries, the IEA’s findings serve as a clarion call for immediate action. Policymakers, tech companies, and environmental advocates must work together to harness the benefits of AI while mitigating its environmental footprint. Failure to address these challenges could compromise the global push toward a more sustainable future.

The International Energy Agency (IEA) has highlighted the rapidly growing impact of artificial intelligence (AI) on global electricity demand, particularly in data centers. According to the IEA, AI-driven innovations are set to more than double the electricity consumption of data centers worldwide by 2030, a development fueled by the expanding adoption of generative AI models and other energy-intensive AI technologies.

The report estimates that global electricity usage by AI-optimized data centers will increase to 945 terawatt-hours annually by 2030, up from current levels. This growth is almost three times the total electricity consumption of the United Kingdom in 2023. Despite the sharp rise, data centers are expected to account for just 3% of the world’s electricity use, showcasing the efficiency gains made in server technologies and data infrastructure.

The IEA stresses that AI’s energy demand poses significant environmental challenges, particularly in regions heavily reliant on fossil fuels for electricity generation. If left unchecked, emissions from data centers could reach 300 million metric tons of CO2 annually by 2035, contributing to the global climate crisis. However, the IEA also highlights AI’s potential to act as a force for sustainability. By enabling more efficient energy systems, AI could help reduce overall emissions by approximately 5%—an encouraging figure that underscores the dual nature of AI’s impact.

To address the environmental implications of AI growth, the IEA advocates for significant policy and technological interventions. These include optimizing energy efficiency in data centers, integrating renewable energy sources, and advancing waste heat recovery systems. Additionally, governments and corporations must collaborate to ensure a sustainable AI ecosystem by incentivizing green technologies and enforcing stringent environmental standards.

The report calls attention to the critical role of innovation in balancing AI’s burgeoning energy requirements with global net-zero goals. For example, smarter grid management, predictive maintenance, and AI-driven resource allocation can all contribute to minimizing waste and reducing energy demand. Moreover, localization strategies—such as situating data centers near renewable energy hubs—are vital for ensuring sustainability.

As AI continues to transform industries, the IEA’s findings serve as a clarion call for immediate action. Policymakers, tech companies, and environmental advocates must work together to harness the benefits of AI while mitigating its environmental footprint. Failure to address these challenges could compromise the global push toward a more sustainable future.