The demand for data centers

Shri

The demand for data centers, cryptocurrency, and AI is expected to double within the next three years, driving significant growth in power consumption.

The International Energy Agency's annual analysis report on the development and policies of the electricity market predicts that the power demand for data centers, cryptocurrencies, AI, and similar technologies may more than double in the next three years, equivalent to the entire national electricity demand of Germany. Globally, there are over eight thousand data centers, with approximately thirty-three percent located in the United States, sixteen percent in Europe, and nearly ten percent in China. Additionally, there are plans for the construction of numerous other data centers.

Taking the rapidly developing Ireland as an example, the IEA forecasts that, by 2026, various data centers will consume thirty-two percent of the country's electricity, compared to seventeen percent in 2022. Ireland currently has eighty-two data centers, with fourteen under construction and another forty approved for construction.

The REA report analyzes that from 2024 to 2026, the global overall electricity demand is expected to increase by an average of 3.4 percent. This growth will be met by renewable energy sources such as wind, solar, hydropower, and nuclear power. By 2026, low-carbon sources will account for nearly half of the global electricity generation, exceeding the proportion of less than forty percent in 2023. This includes nine million electric vehicles and eleven million heat pumps in Europe.

The IEA report also points out that the global electricity generation emission intensity, i.e., the carbon dioxide emissions per unit of energy produced, is expected to decrease by an average of 3.5 percent annually by 2026. For Europe, actively decarbonizing means an expected annual reduction of thirteen percent.

The Executive Director of the International Energy Agency stated that the global economic electricity industry currently generates more carbon dioxide emissions than other industries. With the rapid growth of renewable energy and stable expansion of nuclear power, there is hope to keep up with the increasing global electricity demand in the next three years, which is encouraging.

Kamal531

The event is worth checking out.

Samiksha

It seems that these three industries are still major consumers of electricity.

Ritu77

Doubling the amount is quite a profitable gain.

Ritu13

Three years should be sufficient time.