AI boom to significantly raise global energy demand by 2030, IEA warns

The rapid expansion of artificial intelligence will significantly increase global electricity demand by 2030, potentially consuming nearly as much energy as Japan currently does, according to a new report from the International Energy Agency (IEA).

AI-driven data processing is expected to require more electricity in the U.S. alone than traditional energy-intensive industries combined. Global electricity use from data centres is projected to more than double by the end of the decade, with AI-specific facilities accounting for most of that growth.

Some data centres under construction are anticipated to use 20 times more electricity than current ones. Despite concerns, the IEA believes AI could also drive efficiencies that reduce emissions, such as optimizing electricity grids and industrial systems. However, only about half of the growing demand is likely to be met by renewable sources.

Critics warn that, without proper regulation, AI could reverse progress in reducing fossil fuel reliance, increase water use in arid regions, and revive coal power in countries like the U.S.
The IEA emphasized that how AI is implemented will determine its environmental impact. Governments and industries must act strategically to ensure the technology supports sustainability goals rather than undermines them.