Data centres will account for just under 3% of global electricity consumption by 2030, the International Energy Agency (IEA) has said in a new report.
According to the Energy demand from AI report, data centres consume around 415 TWh of electricity globally, which is equivalent to 1.5% of total global electricity use.
By the end of the decade, under the IEA’s base case scenario, this demand will more than double, to around 945 TWh. This means that between 2024 and 2030, data centre electricity consumption will grow by around 15% each year, more than four times faster than the total electricity consumption of all other sectors.
‘There is substantial uncertainty both about data centre consumption today and in the future,’ the IEA noted. ‘While the technology sector moves quickly and a data centre can be operational in two to three years, the broader energy system requires longer lead times to schedule and build infrastructure, which often requires extensive planning, long build times and high upfront investment.’
AI adoption
The growth of data centre electricity usage is being driven by the rapid adoption of AI, the IEA noted, which requires accelerated servers – electricity consumption from these servers is expected to grow at a rate of around 30% annually, while conventional servers will see a growth rate of 9% per year.
On a geographical basis, the United States, China and Europe are expected to dominate data centre electricity demand over the coming years, however other regions – most notably Southeast Asia – are gaining ground. Electricity demand from data centres in the region is expected to double between now and 2030, due to growth in Singapore and Malaysia.
The United States will remain the largest market, adding around 240 TWh of data centre electricity demand by 2030, representing a 130% increase compared to 2024. China is expected to add around 175 TWh, which equates to 170% growth.
Europe, meanwhile, is projected to add more than 45 TWh between now and the end of the decade (a 70% increase), while Japan will add around 15 TWh (a 80% gain).
Electricity demand
Despite this acceleration, data centres are expected to account for less than 10% of total global electricity demand growth between 2024 and 2030, with other sectors, notably the electrification of transport, industrial expansion, and greater use of air conditioning, set to account for larger increases, according to the IEA.
‘However, while the absolute growth may appear smaller, data centres, unlike electric vehicles, tend to concentrate in specific locations, making their integration into the grid potentially more challenging,’ it noted. Read more here.
