The impact of DeepSeek on AI energy needs: a new era for data centers

The release of DeepSeek’s R1 model, with reduced energy requirements, challenges the predicted energy consumption of data centers powering artificial intelligence.

Partagez:

The rise of artificial intelligence (AI) has led to an increasing demand for computing power, which directly impacts the energy consumption of global data centers. However, the emergence of DeepSeek, a new Chinese leader in the AI field, is changing the game by introducing a more energy-efficient computing model. Its R1 model, which recently overtook ChatGPT as the most downloaded app on the U.S. Apple App Store, requires only around 2,000 Nvidia chips—just a fraction of the computing power typically required for similar programs.

Reduced Energy Requirements

Traditionally, tech companies have invested heavily in data centers to support AI, with projections of exponential energy consumption growth. These investments initially supported the expansion of data centers, which now account for about 1% of global electricity consumption, according to the International Energy Agency (IEA). In 2023, giants like Google, Microsoft, and Amazon invested billions of dollars to expand their data centers, exacerbating energy demand and contributing significantly to greenhouse gas emissions. In contrast, DeepSeek’s R1 model, much more efficient, could reduce these energy needs while maintaining similar performance.

Impact on the Energy Market

The rise of DeepSeek has had an immediate impact on traditional energy players. The stocks of major energy companies, such as Constellation Energy, dropped by more than 20% following the announcement of DeepSeek’s performance. Analysts estimate that the improved energy efficiency of AI could lead to a reduction in electricity demand from data centers, challenging market expectations regarding the growth prospects for energy companies.

Future Outlook

According to the IEA, energy consumption from data centers is expected to double between 2022 and 2026, reaching the annual electricity consumption of Japan. While progress has been made in improving data center efficiency, the growing demand for AI-driven technologies appears inevitable. However, the efficiency of new models, like DeepSeek’s, could mitigate this rise, although some experts, such as Andrew Lensen from Victoria University of Wellington, warn about Jevons’ Paradox. According to this theory, improving efficiency could paradoxically lead to an increase in overall resource consumption, as companies look to capitalize on this enhanced performance to create even more ambitious models.

Implications for the Energy Transition

Tech companies like Microsoft and Meta have already taken steps to secure access to clean energy to power their data centers. These initiatives align with the growing energy needs, but also raise questions about the long-term sustainability of these investments amid rising energy demand. If DeepSeek can prove the efficiency of its model, it could shift this dynamic and provide a more sustainable long-term model, with less reliance on traditional energy resources.

After several decades without funding nuclear projects, the World Bank has formed a strategic partnership with the IAEA to provide technical and financial support to countries integrating nuclear energy into their energy strategies.
South Korea's Nuclear Safety and Security Commission officially validates the decommissioning of reactor number one at the Kori plant, initiating an unprecedented project for the national industry scheduled to last until 2037.
Uranium producer enCore Energy surpasses three thousand pounds per day at its Alta Mesa ISR complex and sees three new Texas laws as a strong signal for faster nuclear production permits.
The International Atomic Energy Agency expresses concerns over Iran’s enriched uranium stockpiles following the abrupt suspension of inspections at key sites disrupted by recent attacks whose consequences remain uncertain.
NPCIL has announced an extension until September 30 for industrial proposals concerning Bharat Small Reactors (BSR), following increased interest from the Indian private sector.
Facing rising temperatures, EDF anticipates cuts in nuclear production starting early July, primarily due to thermal constraints on rivers used for cooling the power plants.
The preliminary agreement launches planning and site assessment for a tailored AP1000 reactor, following two years of feasibility study, and enlists Westinghouse and Hyundai to support Fortum’s regional nuclear expansion.
Donald Trump's unprecedented decision to dismiss Christopher Hanson, a member of the NRC, provokes outrage among former federal officials and raises concerns over the regulatory independence of the U.S. nuclear sector.
Uranium Energy Corp strengthens its position in Anfield Energy Inc., now holding approximately 32.4% of the company’s shares following an investment of CAD19.55mn ($14.82mn), significantly expanding its strategic influence in the uranium market.
New York State plans an advanced nuclear power plant with a 1-gigawatt capacity to meet long-term energy and economic goals, involving significant investment to enhance regional energy independence.
Niger announces its intention to nationalize SOMAÏR, a mining company jointly owned with Orano, provoking strong opposition from the French company and paving the way for further international legal tensions.
Russia strengthens its economic presence in Mali with new agreements, notably in nuclear energy and gold refining, consolidating strategic cooperation within a rapidly evolving geopolitical context.
The US government grants a fourth payment of $100.45 mn to Holtec International to restart the Palisades Nuclear Plant, pending regulatory approval, marking an unprecedented event in the United States.
EDF announces a major agreement with Apollo to raise up to £4.5 billion via bonds to finance the British nuclear project Hinkley Point C, whose costs continue to rise significantly.
The Élysée proposes Anne-Isabelle Étienvre, current Director of Fundamental Research at the CEA, as General Administrator to replace François Jacq, recently appointed President of CNES.
Greek Prime Minister Kyriakos Mitsotakis has announced his country's interest in small modular nuclear reactors to meet national energy challenges and decarbonize the maritime sector within the next fifteen years.
TerraPower, an American nuclear company, secures $650 million funding from investors, including NVIDIA, to develop its Natrium modular reactors in the United States and internationally.
EDF and the French state finalize a €70 billion financing plan for six EPR2 nuclear reactors, including a specific territorial coordination framework in Gravelines led by Michel Marbaix, awaiting European approval by 2026.
Maire S.p.A and Newcleo form strategic partnership to industrialise the development of 200 MW modular nuclear power plants, via a joint venture majority-owned by Nextchem.
A new European consortium launches the design of a small lead-cooled modular reactor, targeting global commercialisation by 2039, with a demonstration scheduled as early as 2035.