Thursday, April 10, 2025

How Much Will AI Compute Grow to 2030, Compared to Electricity Consumption?

A report by the International Energy Administration estimates data centers accounted for around 1.5 percent of the world’s electricity consumption in 2024, and might “more than double” to three percent of electricity consumption by 2030. 


What that means partly depends upon one’s perspective. Consider that estimates of AI-related compute cycles between 2025 and 2030 can range from growth of several hundred percent to 1000 percent (five times  to 10 times).


In that sense, an increase in use of electricity to power the servers handling those operations is relatively low, in relation to the increase in compute volume. 


Of course, the report also emphasizes that the outlook is “highly uncertain.” As always, much hinges on the assumptions about consumption growth and efficiency gains. 


source: IEA 


Ther study pegs data center electricity demand growth at more than space and water heating but less than space cooling or appliance use. 


source: Nature, IEA

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