AI energy demand likely to fall below many financial estimates - DNV forecast
October 10, 2024 11:56 JST
The impact of datacenters and artificial intelligence (AI) on energy demand may be smaller than many financial estimates. Norway's risk management company DNV has indicated this perspective.
According to DNV's estimates, the electrical utilities demand by AI is expected to reach 3.1% in North America by 2030, a ratio significantly lower than McKinsey's forecast (12%) for the US market.
One of the risks associated with the rapid increase in demand is that clean energy sources may not spread at a fast enough pace to cope with it, leading to an expansion in the use of fossil fuels.
According to DNV's estimates, the electrical utilities demand by AI is expected to reach 3.1% in North America by 2030, a ratio significantly lower than McKinsey's forecast (12%) for the US market.
One of the risks associated with the rapid increase in demand is that clean energy sources may not spread at a fast enough pace to cope with it, leading to an expansion in the use of fossil fuels.
DNV believes that AI's energy demand will not change the direction of energy transition, stating in a report that "AI is strongly influenced by Amara's Law. In other words, its impact will be overestimated in the short term and underestimated in the long term."
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