Did you know IEA Projects Data Center Electricity Needs to Exceed 1,000 Twh by 2026, Raising Environmental Concerns
Data centers, the power hungry giants, face an imminent global energy demand surge, potentially doubling by 2026, per an International Electricity Agency (IEA) report.
In
2022, the combined power usage of data centers, AI, and cryptocurrency
hit 460 TWh (Terawatt-hours), nearing 2% of global electricity demand.
Anticipated to exceed 1,000 TWh by 2026, mirroring Japan's entire energy
consumption.
In the US, electricity consumption, down 1.6% after
a 2.6% rise in 2022, is expected to rebound. IEA projects the main
surge in data center electricity needs in Ireland and Denmark. Globally,
over 8,000 data centers exist, with 33% in the US, 16% in Europe, and
around 10% in China, concentrated in California, Texas, and Virginia.
IEA forecasts a tenfold rise in Google's electricity demand due to AI
integration. A comparison with OpenAI's ChatGPT reveals a potential need
for an extra 10 TWh annually, considering 9 billion searches daily.
Cryptocurrency's electricity consumption, rivaling the Netherlands, is
projected to surge by 40%, with IEA acknowledging uncertainties in
adoption pace and tech efficiency.
Fortunately, the electricity
surge aligns with growing energy production. Bloomberg notes renewable
sources outpacing demand, with IEA asserting renewables surpassing coal
as the primary electricity source by 2025. IEA's Faith Birol emphasizes
the positive trajectory of renewables and nuclear power offsetting
global electricity demand, considering the power sector's leading role
in global CO2 emissions.
Concurrently, increased fresh water
usage, linked to data center cooling, is evident. Major tech players
like Microsoft and Google report substantial water consumption spikes,
marking a 34% and 21% increase in 2022 compared to the prior year, which
could become a big contributing factor in climate change in the coming
years.
Chart: IEA
Note: Content produced using AI and edited by humans. m