The Energy-AI Nexus: IEA Report Explores AI’s Growing Power Demand and Energy Potential

As the development and deployment of artificial intelligence (AI) accelerates, so does its impact on the global energy landscape. AI holds the potential to revolutionise how energy systems operate—enhancing efficiency, forecasting, and system management. But it also raises a critical question: can our energy systems meet AI’s growing electricity demand, especially for data centres and computing infrastructure?

This latest report from the International Energy Agency (IEA) tackles this question head-on. For the first time, it provides comprehensive global and regional modelling, offering projections for how much electricity AI could consume over the next decade, what energy sources will meet that demand, and the implications for emissions, energy security, innovation, and affordability.

Until now, policymakers, regulators, and energy stakeholders lacked the tools to fully grasp both sides of this complex relationship. This report aims to close that gap through new datasets and extensive consultation with governments, the tech sector, the energy industry, and international experts.

📊 Key topics include:

• Electricity consumption trends from AI applications
• The role of renewables and grids in supporting AI’s energy needs
• Opportunities for AI to optimise energy systems, from demand-side flexibility to predictive maintenance
• Risks and opportunities related to energy security and climate targets