The global demand for AI technology is set to consume nearly as much energy by 2030 as Japan does today, with much of that coming from data centres. According to the International Energy Agency (IEA), electricity demand from data centres will more than double by 2030, driven largely by AI.

Some AI data centres will require up to 20 times more energy than the average one, raising concerns about the environmental impact.

While AI's rapid adoption could increase energy consumption, the IEA believes it also holds the potential for reducing overall greenhouse gas emissions. AI could improve energy efficiency, assist in designing grids for renewable energy, and optimise industrial processes.

However, the report warns that without careful regulation, AI's growth could strain energy systems and harm the environment, particularly if fossil fuel-powered plants are used to meet energy demand.

Efforts to mitigate the impact of AI include harnessing its capabilities to design energy-efficient systems, optimise transport, and assist in critical infrastructure management. Yet, some experts argue that AI's energy demands might outpace these benefits unless governments take proactive steps.

Claude Turmes, former Luxembourg energy minister, warned that the IEA's optimistic outlook overlooks the severe risks to energy systems, urging stronger regulatory measures.

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