AI-Powered Data Centers Set to Outstrip Japan’s Electricity Consumption

AI-driven data centers, now consuming more electricity than Japan, are set to double their energy use, posing a significant challenge for our environmental future.

Rising Energy Consumption

Data centers are already voracious electricity consumers, accounting for 1.5% of global consumption. However, this demand is steadily increasing, with a 12% annual rise over the past five years.

The role of artificial intelligence in this increase is unmistakable. Generative AI requires significant computational power to process data from vast databases.

Alarming Forecasts for 2030

An April 10, 2025 report from the International Energy Agency predicts that data center electricity usage will “more than double” by 2030.

These facilities could then consume nearly 3% of global electricity, equivalent to about 945 terawatt-hours (TWh), slightly more than Japan’s current total electricity consumption.

Significant Local Impact

On a local level, the impact of these data centers is also concerning. A 100 megawatt data center can consume as much electricity annually as “100,000 households”.

However, the largest centers under construction could consume 20 times more, equivalent to the electricity use of 2 million households.

The Role of AI in the Energy Sector

The OECD’s Energy Agency highlights that artificial intelligence could transform the energy sector over the next decade. While it significantly increases the demand for electricity in data centers, it also presents substantial opportunities for cost reduction, enhanced competitiveness, and emission reductions.

It’s important to note that the distribution of data centers around the world poses challenges in terms of supply and sizing of the electrical grid, especially since they are often concentrated near cities.