Data Center Stat Pack: The Impact of Digital Growth
Demand for digital services is continuing to grow rapidly, reshaping the way we live, work, and communicate. Since 2010, the number of internet users worldwide has more than doubled, now encompassing over four billion individuals. This surge in connectivity has driven a staggering 25-fold increase in global internet traffic, as more people engage in online activities such as streaming videos, using social media, and accessing cloud-based applications.
The latest wave of new digital technologies is now contributing to a new surge in energy consumption. With AI, cryptocurrency, and advanced cloud storage solutions becoming increasingly prevalent on devices and integrated into everyday life, the energy required to support these technologies is expected to increase at a more rapid rate.
Unlike the previous growth phase, which was primarily due to the sheer number of new internet users, the current escalation is fueled by the intensive processing power required for these advanced technologies. AI algorithms require vast amounts of data processing and machine learning operations, which demand significant energy resources. Similarly, cryptocurrency mining involves complex calculations that consume enormous amounts of electricity. As a result, the International Energy Agency (IEA) estimates that electricity consumption from data centers, artificial intelligence (AI), and the cryptocurrency sector could double by 2026.
After globally consuming an estimated 460 terawatt-hours (TWh) in 2022, data centers’ total electricity consumption could reach more than 1,000 TWh in 2026.
A total electricity usage of 1,000 TWh would represent close to 4% of the world's electricity demand in 2023. This is approaching the electricity consumption levels of countries like Russia or Japan, and is equivalent to a quarter of that of the United States.
The tech industry's growing energy footprint underscores the need for more sustainable practices and innovations in energy efficiency. Companies are exploring various strategies to mitigate their environmental impact, such as utilizing renewable energy sources, improving the efficiency of data centers, and developing less energy-intensive algorithms. The future of the digital landscape will depend significantly on balancing technological advancements with sustainable energy consumption practices.