Artificial intelligence is transforming our world — and the energy sector. Earlier this year, the International Energy Agency (IEA) released a comprehensive report examining both AI's projected energy demands and how it might reshape energy systems. But while headlines often raise alarms around electricity demand growth, the reality is more nuanced and complex.

While data centers currently account for just 1.5% of global electricity use, that share is expected to double by 2030, driven largely by the growth of AI. In some regions, particularly in the US, data centers could account for nearly half of all electricity demand growth in the coming years.

So how should we understand the relationship between AI and energy? What does this mean for power systems around the world? Is artificial intelligence a friend or foe to the clean energy transition?

This week, Jason Bordoff speaks with Laura Cozzi, about the IEA's findings on AI's energy demands.

Laura is the chief energy modeler at the International Energy Agency, and its director of sustainability, technology, and outlooks. She oversees the IEA's analytical work on energy, climate, and economic modeling, and led the team that produced the agency's report on artificial intelligence and energy.

Credits: Hosted by Jason Bordoff and Bill Loveless. Produced by Mary Catherine O'Connor, Caroline Pitman, and Kyu Lee. Engineering by Gregory Vilfranc.

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