Electricity demand from data centers is set to double by 2030, driven by AI, potentially leading to increased emissions offset by reductions from AI technologies and innovations in energy.
Key Points
- Electricity demand from global data centres is expected to exceed 945 terawatt-hours by 2030, primarily driven by the rise of artificial intelligence (AI). The International Energy Agency (IEA) indicates that AI-optimised data centres could see demand quadruple during this period.
- In various countries, the impact will be significant; data centres may account for nearly half of the electricity demand growth in the U.S., over half in Japan, and one-fifth in Malaysia. Renewable energy sources and natural gas will play a key role in addressing this rising demand.
- While the increase in emissions from this electricity demand will be relatively minor, potential reductions aided by AI advancements may offset these effects. AI could also spur innovation in energy technologies, emphasizing its transformative potential within the energy sector, according to IEA Executive Director Fatih Birol.
The International Energy Agency (IEA) predicts a significant surge in global electricity demand from data centres, forecasting it will more than double to approximately 945 terawatt-hours by 2030. This escalated demand is largely attributed to the rapid adoption of artificial intelligence (AI), with electricity requirements specifically tied to AI-optimized data centres expected to quadruple.
While Thailand-specific data centre consumption figures are not isolated in the provided data, the country’s digital payment surge (e.g., 800 million PromptPay transactions monthly in 2021) and e-commerce growth ($29.8 billion in 2024) suggest increasing data centre activity.
Particularly pronounced effects will be observed in specific countries. The United States is projected to see data centres account for nearly half of the anticipated growth in electricity demand. Similarly, in Japan, data centres will likely contribute to more than half of the increase, while Malaysia could witness data centres responsible for as much as 20% of the demand spike. This trend highlights the critical role that data centres play in the evolving energy landscape.
Asia-Specific Insights
- Market Significance: Asia Pacific, alongside North America, hosts the most data centre power and square footage globally, with key hubs in Beijing, Shanghai, and Singapore. The region has added the most data centre supply over the past decade.
- Electricity Consumption:
- China: As a major player, China’s data centres are projected to consume nearly 8% of total national power by 2030, driven by AI and large language models. In 2022, China’s electricity consumption was 8,540 TWh, indicating significant data centre demand within this total.
- Singapore: Data centres account for over 7% of the country’s electricity use, exacerbated by high cooling needs due to year-round heat and humidity. A temporary moratorium on new data centres was enacted in 2019 to address energy concerns, lifted in 2022 with sustainability mandates.
- Other Markets: Countries like Thailand, Japan, and India are seeing rapid data centre growth. Japan’s electricity consumption (939 TWh in 2022) and India’s (1,463 TWh) suggest substantial data centre contributions, though specific figures for data centres are less granular.
To meet this rising electricity demand, the IEA underscores that renewables and natural gas will be pivotal energy sources. Interestingly, while increasing electricity consumption from data centres could lead to higher emissions, the IEA suggests that such increases will be modest within the broader context of the energy sector. Emissions could potentially be offset by reductions from AI applications, given wide adoption across industries.
Asia’s data centres are a significant and growing contributor to global electricity consumption, with the region’s hyperscale market, AI adoption, and digital economies like Thailand’s driving demand. While precise TWh figures for Asia alone are scarce, the region’s consumption is substantial within the global 415 TWh (2024) and projected 945 TWh (2030). Sustainability measures, cooling innovations, and grid investments are critical to managing this growth.
