Global electricity demand from data centers is set to more than double to 945 TWh by 2030, equivalent to Japan's current total power consumption, as artificial intelligence drives unprecedented growth in the sector's energy needs, the International Energy Agency said April 10. A new report from the IEA assesses how the relationship between energy and artificial intelligence (AI) is evolving rapidly, drawing on the latest data and analysis and close tracking of technological and economic developments in the AI sector. Gartner analysts estimate worldwide data center electricity consumption will rise from 448 terawatt hours (TWh) in 2025 to. Artificial intelligence is experiencing a real boom, and with it the demand for energy needed to power its infrastructure is growing rapidly. Demand for power is only growing, while the electricity grid is aging and new grid projects face permitting and supply chain challenges. This article is a collaborative effort by Alastair Green, Humayun Tai, Jesse Noffsinger, and Pankaj Sachdeva, with Arjita Bhan and Raman Sharma, representing views from McKinsey's Electrical Power & Natural Gas; Technology, Media & Telecommunications; and Private Capital Practices.
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