The AI challenge: Why does artificial intelligence consume so much?

The explosion in artificial intelligence (AI) is driving a significant increase in energy consumption. The computational needs of AI models, especially generative language models, require energy-intensive infrastructures. Data centers play a crucial role, consuming a significant share of the world's electricity.

Share:

Consommation énergétique IA

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Artificial intelligence, and in particular generative language models such as ChatGPT, require enormous computing power to train on billions of data sets. This requires powerful servers that consume electricity and generate heat, necessitating energy-hungry cooling systems. According to the International Energy Agency (IEA), around 40% of data center electricity is used to power servers, and 40% to cool them. Each query to generative AI uses on average ten times more energy than a Google search, exacerbating the need for investment in new data centers by giants like Google, Amazon and Microsoft. Nevertheless, AI could also play a part in industrial decarbonization.

Data center power consumption

Before the rise of AI, data centers accounted for around 1% of the world’s electricity consumption. With the addition of AI and cryptocurrencies, their consumption in 2022 amounted to 460 Twh, or 2% of global production, a figure that could reach 1,000 Twh by 2026, equivalent to Japan’s electricity consumption. Alex de Vries, an economist at the Free University of Amsterdam, estimates that AI-dedicated servers could consume between 85.4 and 134 Twh per year, comparable to Argentina’s consumption.

Adapting data centers

Fabrice Coquio of Digital Realty, a company managing a data center near Paris, says AI will transform this sector. Servers with high computing power require advanced cooling systems, sometimes using water pumped directly into the equipment. AI imposes specific server, storage and communication requirements, intensifying energy challenges.

Response from the tech giants

Faced with growing electricity consumption, major technology companies are investing in renewable energies. Google, Amazon and Microsoft have set themselves carbon neutrality targets. AWS is aiming for zero carbon emissions by 2040, Google is predicting net zero emissions by 2030, and Microsoft is aiming for a negative carbon footprint by the same date. However, the explosion of AI is making these ambitions more complex, as Microsoft president Brad Smith has acknowledged.
Artificial intelligence, while promising, poses major energy challenges. Managing these growing electricity needs and switching to renewable energy sources will be key to balancing technological innovation and environmental sustainability.

EDF could sell up to 100% of its US renewables unit, valued at nearly €4bn ($4.35bn), to focus on French nuclear projects amid rising debt and growing political uncertainty in the United States.
Norsk Hydro plans to shut down five extrusion plants in Europe in 2026, impacting 730 employees, as part of a restructuring aimed at improving profitability in a pressured market.
The City of Paris has awarded Dalkia the concession for its urban heating network, a €15bn contract, ousting long-time operator Engie after a five-year process.
NU E Power Corp. completed the purchase of 500 MW in energy assets from ACT Mid Market Ltd. and appointed Broderick Gunning as Chief Executive Officer, marking a new strategic phase for the company.
Commodities trader BB Energy has cut over a dozen jobs in Houston and will shift some administrative roles to Europe as part of a strategic reorganisation.
Ferrari has entered into an agreement with Shell for the supply of 650 GWh of renewable electricity until 2034, covering nearly half of the energy needs of its Maranello site.
Paratus Energy Services collected $38mn via its subsidiary Fontis Energy for overdue invoices in Mexico, supported by a public fund aimed at stabilising supplier payments.
CrossBoundary Energy secures a $200mn multi-project debt facility, backed by Standard Bank and a $495mn MIGA guarantee, to supply solar and storage solutions for industrial and mining clients across up to 20 African countries.
Mercuria finalises an Asian syndicated loan refinancing with a 35% increase from 2024, consolidating its strategic position in the region.
Sixty Fortune 100 companies are attending COP30, illustrating a growing disconnect between federal US policy and corporate strategies facing international climate regulations.
Tanmiah Food Company signed three memorandums of understanding to reduce its emissions and launched the region’s first poultry facility cooled by geothermal energy, in alignment with Saudi Arabia’s industrial ambitions.
Subsea7 posted higher operating profit and a record order backlog, supported by long-term contracts in the Subsea and Renewables segments.
Adnoc signed multiple agreements with Chinese groups during CIIE, expanding commercial exchange and industrial cooperation with Beijing in oil, gas and petrochemical materials.
Cenovus Energy completed a $2.6bn cross-border bond issuance and plans to repurchase over $1.7bn in maturing notes as part of active debt management.
The German group is concentrating its industrial investments on Grid Technologies to expand capacity in a strained market, while maintaining an ambitious shareholder return programme.
Enerfip completes its first external growth operation by acquiring Lumo from Société Générale, consolidating its position in France’s energy-focused crowdfunding market.
French group Schneider Electric will supply Switch with cooling and power systems for a major project in the United States, as energy demand driven by artificial intelligence intensifies.
Chinese group PowerChina is strengthening its hydroelectric, solar and gas projects across the African continent, aiming to raise the share of its African revenues to 45% of its international activities by 2030.
The French energy group triples its office space in Boston with a new headquarters featuring a customer experience centre and integrated smart technologies. Opening is scheduled for mid-2026.
Shell extends its early participation premium to all eligible holders after collecting over $6.2bn in validly tendered notes as part of its financial restructuring operation.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.