There is a growing concern in the energy community regarding the increasing electricity consumption of artificial intelligence (AI) systems and data centers as they become more integrated into the global economy. The International Energy Agency (IEA) recently reported that electricity usage by these systems could double in just four years from the 2022 levels. By 2026, data centers supporting AI alone are projected to consume 1,000 TWh annually, equivalent to Japan’s entire electricity consumption.
CEO of National Grid, John Pettigrew, has warned of a significant surge in power usage by data centers driven by AI and quantum computing in the next decade. Additionally, Rystad Energy forecasted a 300 TWh increase in U.S. electricity demand by 2030 due to data centers and electric vehicle fleet expansion. Despite these alarming projections, billionaire Bill Gates believes there is no need to panic about the strain on electricity grids with the rise of AI and data centers.
Speaking at his company Breakthrough Energy’s summit in London, Gates suggested that the increase in electricity usage from data centers will drive a 2-6% rise in global electricity consumption. However, he optimistically stated that AI could play a significant role in achieving more than a 6% reduction. Major tech companies like Amazon, Google, Facebook, and Microsoft, which are heavily investing in expanding their data centers, have also committed to long-term contracts with renewable energy sources to offset carbon emissions.
Although Gates is confident that AI will help facilitate progress towards climate goals, he acknowledges that the world is likely to miss its 2050 climate targets by up to 15 years. He emphasized the importance of transitioning to green electricity at a faster pace to meet these goals, noting that achieving net-zero emissions by 2050 is unlikely. Gates’ company, Breakthrough Energy, has invested in over 100 cleantech companies to reduce global greenhouse gas emissions, with TerraPower focusing on developing sustainable energy technologies, including nuclear reactors.
Gates praised the city of Houston as having the potential to become the Silicon Valley of Energy, highlighting the heroic efforts towards the energy transition seen there. However, he also emphasized the challenges ahead, describing the energy transition as far more difficult than anything he experienced at Microsoft. Despite concerns about the growing electricity consumption from AI and data centers, Gates remains optimistic about the potential for technology to drive sustainable solutions and aid in achieving climate goals.
