AI data centers account for a small percentage of global electricity demand - Report

November 1, 2024 16:36 JST
The electrical demand of AI-driven data centers is expected to account for 0.24% of the global total by 2026.
There is a view that the rapid increase in power consumption will be avoided through semiconductor efficiency improvement.
While the electrical demand of data centers is expected to grow by up to 20% annually until 2030, its share of the world's total power usage revealed in the report remains only minimal.

The rapidly growing artificial intelligence (AI) industry has been noted for imposing significant burdens on power supply and transmission networks. However, according to a report announced by Abu Dhabi National Oil Company (ADNOC), Masdar, and Microsoft on October 31, AI-driven data centers are expected to account for a modest 0.24% of global power demand by 2026.
With the further advancement in computer chip efficiency, there is a widespread belief that AI is unlikely to cause a significant increase in overall power consumption. This report supports such a view. According to recent estimates published by DNV, a risk management company in Norway, AI and data centers are expected to represent only 2% of the world's total power demand by 2050.

However, the proliferation of AI poses a high likelihood of exerting pressure on some regional power companies in areas where data hubs are concentrated. The report highlights that the continued supply of reliable, carbon-free power remains a challenge.

This report includes contributions from Jensen Huang, CEO of the US NVIDIA, and Larry Fink, CEO of US BlackRock. The report was released ahead of a meeting in Abu Dhabi on the 3rd, attended by over 60 top individuals in the energy, finance, and technology sectors.