IEA Forecasts Rapid Growth in Data Center Electricity Demand Through 2026

Data centers, the power hungry giants, face an imminent global energy demand surge, could increase substantially by 2026, per an International Energy Agency (IEA) report.

In 2022, the combined power usage of data centers, AI, and cryptocurrency hit 460 TWh (Terawatt-hours), nearing 2% of global electricity demand. Anticipated to exceed 1,000 TWh by 2026, mirroring Japan's entire energy consumption.

In the US, electricity consumption rose 2.6% in 2022 but declined 1.6% in 2023. IEA projects Ireland and Denmark will account for 20% of the expected increase in data center electricity demand to 2026. Globally, over 8,000 data centers exist, with 33% in the US, 16% in Europe, and around 10% in China, concentrated in California, Texas, and Virginia.

IEA estimates Google's search electricity demand could rise tenfold if AI is fully implemented in search functions. A comparison with OpenAI's ChatGPT reveals a potential need for an extra 10 TWh annually, considering 9 billion searches daily. Cryptocurrency's electricity consumption, rivaling the Netherlands, is projected to surge by 40%, with IEA acknowledging uncertainties in adoption pace and tech efficiency.

Chart: IEA

Note: Content polished using AI and fact-checked by humans. 

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