April 10, 2025

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AI Demand Drives Energy Consumption, Boosts Renewable Energy

The International Energy Agency (IEA) reports that the growing demand for artificial intelligence (AI) is expected to drive a significant increase in energy consumption from data centers worldwide. By 2030, data centers are projected to consume twice as much energy as they do today, with AI being the primary driver of this growth. The IEA forecasts that data centers will use around 945 terawatt-hours (TWh) of electricity by 2030, equivalent to the current annual electricity consumption of Japan. The US, Europe, and China are responsible for 85% of data centers' current energy consumption. While the growth of AI data centers is expected to boost demand for gas- and coal-fired power plants, renewable energy capacity is also set to increase. However, the intermittent supplies provided by wind and solar won't be sufficient to meet the demand, making baseload generation like gas a necessary supplement. Meanwhile, companies like Alphabet, the parent company of Google, are investing heavily in AI and data centers, with plans to invest $75 billion in these areas. AI is also being used in various other fields, including healthcare, where physicians view it as key to reducing professional burdens and improving patient care, and entertainment, where it is being used to create immersive experiences like the revamped version of The Wizard of Oz.

AI to Double Data Center Energy Demand

The International Energy Agency (IEA) reports that data centers will use twice as much energy by 2030, driven by AI. This increase is expected to be equivalent to the current annual electricity consumption of Japan. The IEA projects that data centers will consume 945 terawatt-hours (TWh) in 2030, with AI being the primary driver of this growth. The US, Europe, and China are responsible for 85% of data centers' current energy consumption.

AI Data Centers to Quadruple Energy Demand

A report by the International Energy Agency (IEA) states that energy demands from AI data centers will quadruple by 2030. The report highlights that the global rush to AI technology will require almost as much energy as Japan uses today. AI will be the main driver of the increase in energy demand, with data centers consuming more electricity in the US alone by 2030 than manufacturing steel, cement, chemicals, and other energy-intensive goods combined.

AI Data Center Growth to Boost Coal and Gas Plants

The International Energy Agency (IEA) reports that growth in artificial intelligence-focused data centers will drive demand for gas- and coal-fired power plants. The IEA projects power demand from data centers to double by 2030, with renewable energy capacity also set to increase. However, the intermittent supplies provided by wind and solar won't be sufficient to meet the demand, making baseload generation like gas a necessary supplement.

AI to Drive Surging Electricity Demand

The International Energy Agency (IEA) reports that artificial intelligence has the potential to transform the energy sector, driving a surge in electricity demand from data centers worldwide. The IEA projects that electricity demand from data centers will more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than Japan's current electricity consumption. AI will be the most significant driver of this increase, with electricity demand from AI-optimized data centers projected to more than quadruple by 2030.

IEA Explores AI Opportunities and Challenges

The International Energy Agency (IEA) has explored the opportunities and challenges brought about by AI in the global energy sector. The IEA notes that training and deploying sophisticated AI models occur within vast, power-hungry data centers, with a typical AI-focused data center consuming as much electricity as 100,000 households. The IEA projects global data center electricity consumption to more than double by 2030, with AI being the most important driver of this growth.

Fears of AI Speeding Up Climate Change Overstated

A report by the International Energy Agency (IEA) argues that fears about AI speeding up climate change are overstated. The report states that while data centers will consume more electricity, AI can also help cut emissions through improved efficiency and optimization. The IEA projects that data centers will account for about 1.5% of global electricity use by 2030, with renewables making the largest contribution to meeting data center demand growth.

Trade War Could Slow Down AI Boom

The International Energy Agency (IEA) warns that a global trade war and heightened macroeconomic uncertainties could slow down the growth of the AI data center sector. The IEA's Headwinds Case forecasts slower AI adoption in case bottlenecks emerge and persist, which could lead to delays in capacity expansion and slower growth in electricity demand from data centers.

AI Data Centers to Impact US Energy Demand

A report by the International Energy Agency (IEA) states that the push for artificial intelligence is expected to fuel a sharp rise in electricity demand in the US, with consumption from data centers expected to more than double by the end of the decade. The IEA projects that data centers will require slightly more energy than Japan consumes today by 2030, with demand for AI-optimized facilities alone set to quadruple.

Vast.ai Achieves Security Milestone

Vast.ai, a cloud GPU platform for AI and ML, has successfully completed its SOC 2 Type I audit, demonstrating the company's commitment to maintaining robust security protocols. The certification confirms that Vast.ai has implemented appropriate controls designed to protect customer data and maintain system integrity. The company is already preparing for the more rigorous SOC 2 Type II audit and pursuing additional compliance certifications.

Vast.ai Achieves Security Certification

Vast.ai, a cloud GPU platform for AI and ML, has achieved SOC 2 Type I certification, validating its security infrastructure and commitment to protecting customer data. The company is preparing for the more rigorous SOC 2 Type II audit and pursuing additional compliance certifications to better serve organizations with strict regulatory requirements.

Google Uses AI to Reconceptualize The Wizard of Oz

Google has used AI to revamp the classic film The Wizard of Oz for a 360-degree screen with the highest resolution in the world. The project used generative AI models to magnify the original 35mm film and account for camera cuts, creating an immersive entertainment experience. The team developed an AI-based super-resolution tool, AI outpainting, and performance generation to achieve the natural gestures and fine details that conventional CGI struggles to match.

The AI Magic Behind The Wizard of Oz

Google has used AI to bring the classic film The Wizard of Oz to a 360-degree screen with the highest resolution in the world. The project used generative AI models to create an immersive entertainment experience, with the team developing an AI-based super-resolution tool, AI outpainting, and performance generation. The AI technology allowed for the expansion of scenes, filling in gaps created by camera cuts and framing limitations, and incorporating composites of the original performances into the expanded environments.

nEye Systems Raises $58 Million for AI Networking Chip

nEye Systems, a startup developing a new kind of networking chip for artificial intelligence data centers, has raised $58 million in venture financing. The chip uses optical technology to send information between AI chips in the form of light, which could improve energy efficiency and performance. The startup is focusing on a type of chip called an optical circuit switch, which allows the owner of a data center to change how its computers are connected on the fly.

Mode Launches AI-Native Perpetuals DEX

Mode has launched Mode Trade, its perpetuals decentralized exchange (DEX), utilizing the trading infrastructure of Orderly. The DEX aims to provide retail traders with tools akin to those used by institutional traders, incorporating an AI-powered terminal for trade execution and position management. Mode Trade supports over 100 trading pairs with up to 50x leverage, enhanced by Orderly's synthetic proactive market-making engine.

Judge Berates AI Entrepreneur for Using AI Lawyer

A judge has berated an AI entrepreneur for using an AI-generated avatar in a court case, stating that the courtroom is not a launchpad for business. The entrepreneur, Jerome Dewald, used an AI-generated lawyer to present his case, but the judge was unaware that the lawyer was not a real person. The incident highlights the potential risks and challenges of using AI in legal proceedings.

Alphabet to Invest $75B in AI and Data Centers

Alphabet, the parent company of Google, plans to invest $75 billion in AI and data centers. The investment will support the infrastructure needed for Alphabet's core services, including Google Search, Google Cloud, and YouTube. The company aims to expand its capabilities in AI and machine learning, and to improve the efficiency and performance of its data centers.

Physicians View AI as Key to Reducing Professional Burdens

A report by Innovaccer found that physicians and administrators view AI as key to reducing professional burdens and improving patient care. The report states that 65% of respondents think AI is critical to reducing professional burden, with 82% of physicians and 77% of administrators prioritizing automated administrative systems. The report highlights the potential of AI to augment decision-making capabilities and improve diagnostic accuracy.

AI Predicts Surprise Winner of UEFA Champions League

An AI supercomputer has predicted a surprise winner of the UEFA Champions League, with Arsenal emerging as the top contender. The AI model analyzed various factors, including team performance and player statistics, to predict the outcome of the tournament. The prediction is based on a complex algorithm that takes into account multiple variables, including team strength, player injuries, and head-to-head matches.

WordPress.com Launches AI-Powered Website Builder

WordPress.com has launched a free AI-powered website builder that allows users to create a functioning website using an AI chat-style interface. The builder is targeted at entrepreneurs, freelancers, and bloggers who need a professional online presence. The AI builder includes 30 free prompts before users need to choose a hosting plan, and it is powered by a mix of self-hosted open-source models and externally hosted models.

Key Takeaways

  • The International Energy Agency (IEA) projects that data centers will consume twice as much energy by 2030, driven by the growing demand for artificial intelligence (AI).
  • AI is expected to be the primary driver of the increase in energy demand from data centers, with data centers projected to use around 945 terawatt-hours (TWh) of electricity by 2030.
  • The US, Europe, and China are responsible for 85% of data centers' current energy consumption.
  • The growth of AI data centers is expected to boost demand for gas- and coal-fired power plants, but renewable energy capacity is also set to increase.
  • Alphabet, the parent company of Google, plans to invest $75 billion in AI and data centers.
  • Physicians view AI as key to reducing professional burdens and improving patient care, with 65% of respondents thinking AI is critical to reducing professional burden.
  • AI is being used in various fields, including entertainment, where it is being used to create immersive experiences like the revamped version of The Wizard of Oz.
  • The IEA forecasts that data centers will account for about 1.5% of global electricity use by 2030, with renewables making the largest contribution to meeting data center demand growth.
  • A global trade war and heightened macroeconomic uncertainties could slow down the growth of the AI data center sector.
  • Companies like nEye Systems are developing new technologies, such as optical circuit switches, to improve the energy efficiency and performance of AI data centers.

Sources

AI Data Centers Energy Demand International Energy Agency Artificial Intelligence Machine Learning