The global AI push will have serious environmental ramifications by 2030, says a new report from International Energy Agency (IEA). According to the findings, processing data will require almost as much energy as Japan currently uses, with only half of that comprising renewable energy.
Among the other findings, global electricity demand from datacenters will more than double by 2030, with AI expected to be the main driver of that increase. At the same time, processing data will expend more electricity in the US than manufacturing steel, cement, chemicals, and all other energy-intensive goods combined by that same time period.
Global investment in AI is showing no signs of abating, with the technology transforming workplaces and businesses around the world. This study is a worrying reminder of the tangible impact that all of this spend is having.
Demands of AI Will Double Datacenter Energy Output, Says Report
The AI revolution is well underway, and by 2030, the environmental impact will be huge, according to a new report from IEA. The electricity required for data processing will outstrip that used for manufacturing steel, cement, chemicals, and all other energy-intensive goods combined.
In the same timeframe, the global electricity demand commanded by datacenters will more than double, with AI set to play a significant part in the surge. Dedicated AI datacenters will consume more than four times the amount of electricity that they are currently doing by the end of the decade.
This just in! View
the top business tech deals for 2025 👨💻
In sum, by 2030, the total energy required to maintain the current AI push will almost match that of Japan’s total energy output. Only about half of this will be made up of renewable energy.
Environmental Damage of AI Could Be Offset
Despite the worrying findings, the report also notes that fears over AI’s environmental impact may be overstated. This is because the potential upsides of AI adoption will offset some of the worst effects – for example, by making manufacturing and logistics more energy-efficient and thus less greenhouse gas-emitting.
According to Faith Birol, the executive director at IEA: “With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time. AI is a tool, potentially an incredibly powerful one, but it is up to us – our societies, governments, and companies – how we use it.”
Among the cited examples, AI could make it easier to design electricity grids to take more renewable energy, as well as assisting in the design of more efficient cities, with optimal public transport and traffic systems. However, the report cautions, this will require greater governmental oversight than what we are seeing at the moment.
Change Required, Report Makes Clear
As the AI race continues to unfold at a dizzying pace, the report shines a light on a critical area that is in danger of being overlooked. If left to continue its development undisturbed, it’s likely that the impact of AI on our planet could be catastrophic.
Since beginning his second term in January, President Donald Trump has set about dismantling much of the apparatus that the preceding administration set up to safeguard against the worst excesses of AI. Shortly after taking office, he announced Project Stargate, a multibillion dollar venture that seeks to put down a significant marker in the AI race.
In the ensuing months, the competition between the US and China has intensified, with both superpowers determined to stake their respective claims as the dominant force in this area. Whatever the future holds is uncertain, but the report makes it clear: the current global approach to AI is unsustainable, and change is required to avert a potential environmental disaster.
