The rapid rise of digital technologies, driven by the massive development of artificial intelligence (AI), is transforming global electricity demand. Data centres, which serve as the critical infrastructure for this revolution, require vast amounts of energy to operate continuously and power the intensive computing processes inherent in AI. A data centre using AI now consumes as much electricity as 100,000 households, a reality that is reshaping the energy supply priorities of tech companies.
Impact of data centre electricity consumption
The figures show a sustained increase: in 2024, data centres consumed around 1.5% of the world’s electricity, or 415 terawatt-hours (TWh). Projections suggest that this consumption will double by 2030, reaching 945 TWh, roughly equivalent to the annual electricity demand of Japan. This trend raises concerns about the resilience of power grids and the ability of industry players to ensure supply security while controlling operational costs.
In response, several tech companies are committed to accelerating the shift to renewable energy to power their data centres. New industrial installations are prioritising alternative sources, driven in particular by the growing competitiveness of solar photovoltaics and wind, which are now more cost-effective than fossil fuels in most global markets.
Regional imbalances and infrastructure challenges
Geographical disparities remain significant in access to renewable energy. The Organisation for Economic Co-operation and Development (OECD) countries and China account for 80% of installed capacity worldwide, while Africa lags behind with only 1.5%. Investment in networks and storage is crucial to support the rapid growth of the digital sector and ensure the efficient integration of renewable sources.
Governments, faced with rising tensions between decarbonisation goals and support for strategic industries, are pursuing sometimes divergent policies. Some are enhancing incentives for renewable energy, while others maintain or increase subsidies for fossil fuels, creating a complex environment for technology sector operators.
Innovation capacity in response to growing demand
The ongoing global digitalisation and the continued increase in AI demand are pushing digital solution providers to invest in energy optimisation and technological innovation. Challenges related to managing peak consumption, grid stability, and the deployment of appropriate storage capacities are becoming priorities to ensure the sector’s competitiveness in the medium term.
The scale of investments required in electrical infrastructure and the management of risks related to energy price volatility will shape the growth prospects of tech players, as global electricity demand has never been higher.
