For example, the study predicts that search engine sites like Google could see a tenfold increase in electricity demand when AI is fully implemented on their platform.
"Comparing the average electricity demand of a typical Google search (0.3 Wh of electricity) with OpenAI's ChatGPT (2.9 Wh per request), and considering 9 billion daily searches, this would require almost 10 TWh of additional electricity in a year," he said. According to the report, "AI electricity demand can be more fully forecast based on the number of AI servers estimated to be sold and their rated power."
NVIDIA continues to lead the AI โโserver market, which has a 95% market share. Last year, NVIDIA shipped 100,000 units that consume an average of 7.3 TWh of electricity per year. IEC said that by 2026, the AI โโindustry is expected to have grown exponentially to absorb at least ten times its demand in 2023.
Cryptocurrencies consumed around 110 TWh of electricity in 2022, representing 0.4% of global annual electricity demand. IEC forecasts that cryptocurrency electricity consumption will increase by more than 40% to around 160 TWh by 2026.
However, the study highlighted the differences and technological efficiency challenges between the main cryptocurrency platforms: Bitcoin and Ethereum. Ethereum reduced its electricity demand by 99% in 2022 by changing its mining mechanism, while Bitcoin is estimated to have consumed 120 TWh by 2023, contributing to a total cryptocurrency electricity demand of 130 TWh.
"Challenges to reducing electricity consumption persist, as energy savings can be offset by increases in other energy-consuming operations, such as other cryptocurrencies, even as some become more efficient," the study says.
The US market will increase
From a regional perspective, IEC found more than 8,000 data centers worldwide: 33% in the US, 16% in Europe and almost 10% in China.
IEC estimates that the US data center The electricity consumption rate will increase from about 200 TWh in 2022 to almost 260 TWh in 2026, accounting for 6% of total electricity demand. This growth will be a result of continued adoption of 5G wireless networks, cloud-based services, and competitive state tax incentives.
California, Texas and Virginia have become the largest data center markets. Virginia experienced rapid data center growth in 2021, attracting 62% of the state's new investment and creating more than 5,000 new jobs. Northern Virginia is the largest data center market in the U.S., collecting $1 billion in local tax revenue annually. The market will grow even more as Amazon moves forward with its $35 billion expansion plan by 2040.
However, the IEC study noted that the new legislation will tighten regulations on data center development, including zoning rules, mandatory environmental and resource impact assessments, and guidelines on water use.
Regional transmission organization (RTO), PJM, expects data centers to drive new electricity demands. Peak summer load is projected to increase from 151 GW in 2024 to 178 GW in 2034.
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