Artificial intelligence could become the most powerful consumer of electricity among digital technologies by the end of 2025. This conclusion was drawn by analyst Alex de Vries from the Institute for Environmental Studies at the Vrije Universiteit Amsterdam, who researched the dynamics of energy consumption in the AI sector.
This is reported by Finway
AI is Rapidly Approaching Bitcoin Levels in Energy Consumption
According to the expert’s estimates, artificial intelligence currently consumes up to 20% of all the energy used by data centers worldwide. If this growth trend continues, the AI sector could account for about 23 gigawatts of energy — comparable to the electricity consumption level in the United Kingdom. At the same time, this is about half the capacity currently used by all data centers on the planet.
To assess the scale, the analyst employed a triangulation method, combining data on chip production from TSMC, corporate reports, and public publications. Over the past year, the production of components for AI processors has doubled, according to research published in the journal Joule.
Challenges for Energy and Risks for Sustainable Development
“The rapid growth of data centers, lack of transparency in reporting, and increased strain on the power grid. Despite promises of climate responsibility, companies like Microsoft and Google do not disclose data specifically related to AI in their sustainability reports.”
Furthermore, the analyst notes similarities between cryptocurrency mining and the development of AI: both sectors tend to lack transparency in reporting and exert significant pressure on the energy system. Due to the rising demand for electricity, energy companies in the U.S. have already announced the construction of new gas and nuclear plants specifically to support the AI industry. This could complicate the transition to renewable energy sources and replicate the risks that arose from Bitcoin mining.
Experts also point to Jevons’ Paradox: improvements in energy efficiency of technologies do not always lead to a reduction in electricity consumption. On the contrary, more efficient AI is used even more widely, which increases overall energy demand. Without open and detailed statistics on energy consumption in this sector, it will be impossible to address the issue, emphasizes de Vries.
It is worth noting that recently Pakistan allocated 2000 megawatts of capacity for the development of Bitcoin mining and the artificial intelligence sector.