According to a report published on April 10, 2025, by the International Energy Agency (IEA), AI data center energy demand is to quadruple by 2030, with data centers worldwide projected to consume more than twice their current electricity usage by the end of the decade. The primary driver of this surge is artificial intelligence (AI), with demand from AI-specific data centers expected to quadruple. Currently, a single data center can consume as much electricity as 100,000 households; some facilities under construction are anticipated to require 20 times that amount.

The IEA estimates that by the end of the decade, global energy demand from AI could surpass Japan’s current total electricity consumption. In the United States, data processing, primarily driven by AI, is projected to consume more electricity by 2030 than all energy-intensive industries combined, including steel, cement, and chemical manufacturing. However, only about half of this increased demand is expected to be met by renewable energy sources. ​

AI’s Potential to Aid, Not Undermine, Climate Goals

The IEA study addresses worries that the rapid rise of AI might stall global climate efforts, arguing that such concerns may be overblown. The organization emphasizes that AI has the potential to improve efficiency across all industries, lowering overall greenhouse gas emissions. For example, AI can improve electrical networks by making it easier to integrate short-term renewable energies such as wind and solar power, which were originally built for centralized fossil fuel systems. ​

The report also underscores AI’s capacity to detect infrastructure issues, organize public transportation systems, manage urban traffic patterns, and support the development of autonomous vehicles. Additionally, AI could assist mining companies in identifying and utilizing deposits of critical minerals essential for renewable energy technologies like electric vehicles, wind turbines, and solar panels. However, the IEA emphasizes that these benefits are unlikely to materialize without robust government policy guidance. ​

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Concerns Over Resource Use, Regulation, and Fossil Fuel Revival

Despite the IEA’s results, several opponents claim that the organization downplays key concerns linked with AI advancement. Claude Turmes, a former Green MEP and Luxembourg’s energy minister, claims that the IEA fails to give countries specific proposals for curbing the rising power of giant data centers. He warns that the negative consequences of AI are more likely to occur than the agency’s positive estimates indicate.

Turmes also accuses the IEA and its director of offering a gift to tech companies and the incoming Trump administration by not fully presenting policymakers with the extensive energy and environmental implications of AI. ​

Furthermore, according to a recent Guardian report, AI data centers need a lot of fresh water for cooling, which might deplete water resources in some of the world’s driest locations. The IEA is also concerned that rising energy demand would reverse recent achievements in energy efficiency, putting more pressure on gas plants or potentially resurrecting coal-fired power plants in nations such as the United States. Notably, the projection that AI data center energy demand to quadruple by 2030 underscores the urgency of addressing these environmental and infrastructural challenges.

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