AI Driving Surge in Electricity Demand from Data Centres: IEA Report IEA warns of growing power needs for data centres due to AI, with electricity demand set to double by 2030 globally. Renewables and natural gas will be key energy sources. Major implications for the energy sector worldwide.

The IEA report also highlighted the potential for AI to help reduce emissions in the energy sector. It noted that AI could be used to optimise electricity grids, improve energy efficiency in buildings and industry, and enable new clean energy technologies like smart grids and electric vehicles.

However, it warned that as data centres become more central to our digital economy, their electricity use will need to be closely monitored and managed. The report called for policies to ensure that data centres are powered by clean energy sources wherever possible, and that they operate efficiently.

It recommended measures such as setting efficiency standards for data centres, encouraging the use of renewable energy through incentives or regulations, and promoting research into new technologies that can reduce the environmental impact of data centres.

The IEA also stressed the importance of international cooperation on this issue. Data centre demand is a global phenomenon, with countries around the world facing similar challenges in meeting their electricity needs while reducing emissions. The report called for greater collaboration between governments, industry players, and other stakeholders to address these issues together.

In conclusion, the IEA report highlights both the opportunities and challenges presented by AI-driven growth in data centre power demand. While AI has the potential to transform how we produce and consume energy in positive ways, it also poses significant risks if not managed effectively.

By taking proactive steps now to promote clean energy sources, improve efficiency standards, and foster innovation in this space, policymakers can help ensure that AI's impact on electricity demand is a net positive for society as a whole. With careful planning and coordination at both national and international levels, we can harness the power of AI to create a more sustainable future for all.