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AI electricity risks overblown, analysts argue

Updated May 1, 2025, 6:38am EDT
North America
A data center.
ECMWF Flickr Creative Commons Photo.
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Fears that the skyrocketing use of artificial intelligence will cause global electricity shortages are overblown, analysts argued.

While AI is extremely energy-intensive, PwC analysis suggested that if the technology improved energy efficiency across the economy at a tenth of its rate of adoption, AI would roughly offset its increased power demands. IEEE Spectrum’s power and energy editor, meanwhile, noted that in the US, history shows that “innovations in efficiency continually compensate for relentless technological progress.”

They will need to: A report last month from the International Energy Agency forecast that electricity demand from data centers would more than double by 2030, requiring more power than all of Japan does today.

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