According to the International Electricity Agency, that would be the same as adding an entire new Sweden to the global energy system.
A bustling data centre is the driving force behind every web-based application, artificial intelligence model, and cryptocurrency of the moment. And behind every data centre is a voracious rate of energy consumption. According to a report that was recently published by the International Electricity Agency (IEA), these businesses are in dire need of significant quantities of electricity at an unprecedented rate. By the year 2026, the load that data centres, artificial intelligence, and cryptocurrency put on the electricity infrastructure is expected to have doubled.
Global energy consumption is analysed by the International Energy Agency (IEA), which is an independent organisation. Based on the findings of this analysis, the IEA provides recommendations for energy policy. This week’s “Electricity 2024” report from the International Energy Agency (IEA) states that in 2022, data centres, artificial intelligence, and cryptocurrency combined utilised 460 terawatt hours (TWh) of electricity, which accounted for roughly 2% of the total energy consumption in the globe. As a result of the growing interest in all three categories—yes, including cryptocurrency—the International Energy Agency anticipates that demand will increase to 800 TWh year. Despite the fact that its model allows for some wiggle space, proposing 600 TWh per year as a “low case” and 1,050 TWh per year as a “high case,” it is likely that real demand will lie somewhere in the middle of these two categories.
For the purpose of putting these numbers into perspective, the International Energy Agency (IEA) estimates that the additional pressure on the global energy grid would be similar to the addition of “at least one Sweden, or only one Germany.”
It takes a lot of resources to run a data centre, including computing, cooling, and what the Internet Engineering Association (IEA) refers to as “associated IT equipment.” A data center’s entire electricity consumption can be broken down into three categories: approximately forty percent, forty percent, and twenty percent. It is only natural that the computers and cooling mechanisms that are responsible for sustaining digital data will consume more electricity as the world continues to rely on digital data. Additionally, it is only natural that the number of data centres throughout the world, which currently number more than 8,000, will increase.
It should come as no surprise that artificial intelligence is a significant contributor to the growing energy draw of technology. According to the Internet Engineering Association (IEA), Google alone is expected to suffer a “tenfold” increase in the demand for electricity as it continues to expand Bard, its huge language model and ChatGPT competitor. Not only do chatbots, picture generators, and other AI-based tools require a significant amount of energy to design, train, and maintain, but they also require an astounding amount of electricity to use. For example, just a few AI photos can consume as much electricity as it takes to charge your smartphone.
It is anticipated that cryptocurrency will require a greater amount of energy during the next two years, despite the fact that attempts are being made to achieve the reverse. In 2022, Ethereum, the second-largest cryptocurrency in the world, effectively cut its electricity consumption by 99% by switching its mining process to the proof-of-stake model. This information has been confirmed by the International Energy Agency (IEA). In spite of this, the organisation forecasts that Bitcoin and other cryptocurrencies will demand forty percent more electricity than they already do since gains in other areas would cancel out the energy savings.
This kind of figure is intimidating, and there is a solid reason for that. The 21st century is filled with additional pressures for the global energy system, including portable electronic devices, electric automobiles, and all of the handheld devices that we rely on throughout the day. According to the International Energy Agency (IEA), in order to satisfy demand, the globe will require fifty million more transmission lines by the year 2040. On the other hand, if there is any solace to be found in this situation, it is the fact that renewable energy sources are steadily supporting a greater proportion of the world’s energy requirements, and that “new” methods of energy extraction are emerging on an annual basis.