As the adoption of artificial intelligence (AI) accelerates, the world’s energy systems are poised for a significant shift. The growing demand for computing power is driving the construction of massive data centers, with some capable of consuming as much electricity as 350,000 electric cars.
The power demands of these “hyperscale” data centers far exceed those of their predecessors, with annual electricity consumption equivalent to that of hundreds of thousands of electric vehicles. This trend is expected to continue, with forecasts suggesting a 10-15% annual growth in data center power demand between now and 2030.
According to S&P Global Commodity Insights, data centers could account for up to 5% of total global power demand by 2030, with the impact felt most keenly in developed economies. The rapid expansion of these facilities poses challenges to electricity grids, as new projects can take several years to complete, while transmission infrastructure takes even longer.
While large tech companies have been quick to adopt clean energy solutions to power their data centers, this has sometimes led to a diversion of renewable resources from the grid. As demand for power grows, it may require additional gas-fired generation capacity or extended lifespans for aging coal-fired plants – a scenario that contradicts many predictions about energy systems transformation.
The shift towards a more energy-intensive AI-driven world will fundamentally alter the trajectory of global power demand, with far-reaching implications for energy markets and carbon emissions.
Source: https://www.forbes.com/sites/gauravsharma/2024/12/20/hyperscale-data-centers-may-fundamentally-alter-global-power-demand