A groundbreaking new report from the International Energy Agency (IEA) sheds light on one of the most urgent — and often overlooked — challenges in the global energy transition: the rapid rise of electricity demand driven by artificial intelligence (AI).
Titled Energy and AI, the report offers the most comprehensive, data-based global analysis to date on the complex and evolving relationship between AI technologies and the energy sector. Drawing on new datasets and extensive expert consultations, the IEA projects that electricity demand from data centres will more than double by 2030, reaching 945 terawatt-hours — equivalent to the current electricity use of Japan.
AI is identified as the primary driver of this trend. Power consumption from AI-optimized data centres alone is expected to more than quadruple over the same period. In the United States, data centres may account for nearly half of all growth in electricity demand through 2030. Similar patterns are anticipated in other advanced economies, pushing energy systems back into growth mode after years of stagnation.
While this surge in demand poses challenges for energy security and grid infrastructure, the report also highlights the opportunities AI presents. From accelerating scientific innovation in clean energy technologies to optimizing energy efficiency across sectors, AI could play a pivotal role in reducing emissions and boosting competitiveness — if managed wisely.
At the same time, the report flags emerging risks. Cyberattacks targeting energy infrastructure have tripled in the past four years, growing more sophisticated with the help of AI — even as AI becomes a key defensive tool for utilities. The demand for critical minerals needed in AI hardware, particularly in data centres, also raises sustainability concerns.
The IEA’s report follows its 2024 Global Conference on Energy and AI and contributions to the AI Action Summit. It also marks the launch of a new Observatory on Energy, AI and Data Centres, aimed at tracking global electricity demand and cutting-edge applications of AI in the energy sector.
Alongside the report, the IEA has introduced an AI agent to help users explore the findings interactively — underscoring the agency’s commitment to transparency, accessibility, and ongoing dialogue on the future of energy in the age of AI.