The International Energy Agency (IEA) has issued a significant forecast indicating that electricity consumption by global data centers will more than double by 2030, largely driven by the exponential growth of artificial intelligence (AI) technologies. As demand for AI applications skyrockets, the power-hungry infrastructure required to support these systems is putting increasing pressure on global energy resources.

Current Energy Usage and Future Projections

Data centers currently account for approximately 1.5% of the world’s total electricity consumption. However, by the end of the decade, this figure is expected to climb to around 3%, reflecting the increasing reliance on data-intensive technologies such as generative AI, machine learning, and real-time data processing.

The report highlights that countries such as the United States, China, and those in the European Union will be at the center of this surge, given their leading roles in AI development and data center operations.

Big Tech Turns to Nuclear and Renewables

To meet soaring electricity demands while addressing climate concerns, major tech companies are exploring alternative energy solutions. Tech giants are investing in small modular nuclear reactors and expanding their reliance on renewable energy sources.

Google has partnered with providers to source nuclear energy, while Microsoft is reportedly planning to power some of its data centers using new-generation reactors. Amazon has also signed agreements to support its infrastructure with clean energy, underscoring a broader industry trend toward sustainable solutions.

Carbon Emissions and Environmental Impact

Although the electricity usage of data centers is expected to rise sharply, the IEA notes that their share of global carbon dioxide emissions will remain relatively limited. Projections suggest that emissions from data centers could rise from 180 million tonnes today to 300 million tonnes by 2035. Even at this higher level, data centers would still contribute a small fraction to the estimated global emissions of over 40 billion tonnes.

Nevertheless, the report emphasizes the need for improved energy efficiency and the adoption of cleaner power sources to mitigate the environmental impact of increased demand.

Policy Response and National Initiatives

In response to these forecasts, several countries are initiating policies aimed at securing energy supply for AI-related growth. Notably, the United States has proposed the formation of a “National Council for Energy Dominance” to boost power generation capacity, supporting the rapid expansion of AI infrastructure across the country.

Coal still powers around 30% of global data centers, but the IEA predicts a major shift toward natural gas and renewables due to their lower cost and scalability in key regions.

A Pivotal Moment for Tech and Energy

The rapid rise of AI is transforming not just technology but also the global energy landscape. With electricity demand set to soar, the tech industry is at a crossroads, balancing the need for innovation with urgent climate and sustainability challenges. The next five years will be critical in shaping how energy-efficient and environmentally responsible the digital economy becomes.