AI's Energy Hunger: Data Center Power Consumption to Double by 2030

A new report from the International Energy Agency (IEA) reveals that data center electricity consumption is projected to more than double by 2030, primarily driven by Artificial Intelligence (AI). The report forecasts data centers will consume 945 terawatt-hours (TWh) in 2030, roughly equivalent to Japan's current annual electricity consumption. AI servers already accounted for 15% of total data center energy demand in 2024. While developing economies are projected to account for only 5% of future growth, advanced economies will contribute over 20%. The IEA estimates that 20% of planned data centers might face grid connection delays. Experts suggest the energy consumption of AI might be underestimated, highlighting the need to address the surge in global electricity demand.