Rising Energy Demand from Data Centers

Estimates indicate that data centers consumed 2% of global energy in 2022, a relatively small percentage that is significant in the context of global energy consumption. Projections by the International Energy Agency suggest that data centers' energy demand will double to about 1,000 terawatt hours by 2026, equivalent to Japan's total energy demand. With the integration of AI, data centers are expected to represent 4.5% of global energy generation by the end of the decade, showing a significant increase from the previous year's 2%. Despite being estimates, these projections highlight the substantial growth and impact of data centers on global energy consumption, raising questions about the accuracy of such forecasts, especially in the realm of AI development where companies may hold proprietary information.