Powering AI: How the World Will Keep Up with Soaring Data Centre Demand
As artificial intelligence reshapes industries and societies, the need for electricity to power data centres is rising fast. A new report from the International Energy Agency (IEA) shows that supplying power to these facilities will require more than 1,000 TWh annually by 2030 — more than double today's levels. While renewables are ramping up quickly, fossil fuels and nuclear still play a major role in the energy mix, raising questions about sustainability and emissions as AI expands.
🌍 How the World Will Power AI
Electricity demand for data centres is set to grow from 460 TWh in 2024 to over 1,000 TWh by 2030, reaching 1,300 TWh by 2035. Nearly half of this additional demand will be met by renewables — primarily wind, solar PV, and hydro — but fossil fuels remain dominant in today’s supply and are expected to meet more than 40% of the added demand through 2030. Nuclear also gains ground after 2030, driven by developments in small modular reactors (SMRs).
🔥 Coal, Gas, and Renewables: The Global Mix
As of 2024, coal remains the largest source of electricity for data centres globally at around 30%, followed by renewables at 27%, natural gas at 26%, and nuclear at 15%. China relies most heavily on coal, while the U.S. leads in gas-fired generation. Renewables are growing fastest — rising 22% annually through 2030 — but fossil fuels remain critical for managing demand spikes and delays in grid expansion across many regions.
🔀 What Happens Under Different Scenarios?
Despite rapid clean energy growth, fossil fuels remain a crucial part of the equation. Across all future outlooks in the IEA’s lAcross all IEA scenarios, renewables scale up significantly — often meeting more than half of added electricity demand through 2030. However, grid delays, permitting bottlenecks, and the speed of AI-driven growth mean fossil fuels continue to play a vital role. In all cases, they remain essential for managing shortfalls and ensuring reliability.
By 2035, fossil fuels are still projected to supply around 40% of global data centre electricity needs — even as renewables and nuclear expand. The ultimate mix will depend on how quickly low-emissions sources can be deployed, alongside supportive policy and infrastructure rollout.
🌫️ Emissions Outlook
CO₂ emissions from powering data centres are projected to peak at around 320 million tonnes in 2030, before falling slightly to 300 Mt by 2035. By 2030, data centres are expected to consume about 3% of global electricity, yet account for less than 1% of total emissions — unless demand accelerates beyond current forecasts.
