- By 2026, data center electric power consumption could reach 1,050TWh
- That growth is equivalent to a country’s demand, such as Germany or Sweden
- Crypto and AI account for much of that growth
Data centers’ use of electric power could double by 2026, in no small measure due to AI and cryptocurrencies, the International Energy Agency (IEA) alarmed in a new report. The agency reported that data centers, cryptocurrencies, accounted for just two percent of global electricity demand in 2022, using electric power of 460TWh. Crypto mining is estimated to account for almost 25% of that use, or 110TWh.
Adding a whole country’s consumption
By 2026, data center electric power consumption could reach 1,050TWh, including that used for cryptocurrencies and AI. The IEA estimates that growth to be equivalent to an entire country’s demand, such as Germany or Sweden.
US leads the pack
The highest number of data centers today is in the US. The North American country has about a third of the world’s approximately 8,000 data centers. The US also hosts the most Bitcoin miners in the world. The IEA forecasts that data center electric power consumption will increase from 4 to 6 percent of US demand from 2022 to 2026. Growth of cloud-based services and 5G networks will contribute to the rise.
Ireland follows suit
Ireland has 82 data centers, accounting for just under a fifth of the country’s consumption in 2022. The country attracts business with one of the lowest corporate taxes in the EU. There will be another 54 data centers by 2026. The IEA projects them to account for nearly a third of Ireland’s annual electricity demand, posing challenges for the grid.
Power demand for crypto up 40% in three years
The IEA estimates electric power demand for crypto to increase by 40 percent in the next three years. There have been some positive developments, including the Ethereum Mainnet’s Merge. Bitcoin is still accountable for most carbon emissions resulting from crypto mining activity.
Cause for optimism
The IEA also predicted accelerated growth of renewable energy, overtaking coal to generate more than 33% of electric power globally by 2025.
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