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The energy myth of AI: why forecasts are not so scary


October, 18 2024
watermark Economic news

While interest in artificial intelligence is steadily growing around the world, its impact on electricity demand may be more modest than expected. 


The International Energy Agency (IEA), in its World Energy Outlook 2024 report, indicates that increased efficiency of computing processes and limited availability of chips and power grids may curb the growth of AI-related electricity consumption.


Analysts predict that by 2050, AI and data centers will account for only 2% of global electricity demand. The IEA also predicts that data centers will account for only 3% of the growth in electricity consumption by 2030, which is less than the electricity needs for air conditioners and electric vehicles.


At the same time, India is striving to become a leader in the production of green hydrogen. The country is considering reducing tariffs on imports of equipment for the production of green hydrogen and plans to increase production to 5 million tons by 2030, investing about $187 billion.


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