PARIS: Electricity consumption by data centres will more than double by 2030, driven by artificial intelligence applications that will create new challenges for energy security and CO2 emission goals, the IEA said on Thursday.

At the same time, AI can unlock opportunities to produce and consume electricity more efficiently, the International Energy Agency (IEA) said in its first report on the energy implications of AI.

Data centres represented about 1.5 per cent of global electricity consumption in 2024, but that has increased by 12pc annually over the past five years. Generative AI requires colossal computing power to process information accumulated in gigantic databases.

Together, the United States, Europe, and China currently account for about 85pc of data centre consumption. Big tech companies increasingly recognise their growing need for power.

Google last year signed a deal to get electricity from small nuclear reactors to help power its part in the artificial intelligence race.

Published in Dawn, April 11th, 2025