AI's massive growth could lead to a surge in energy consumption: Barclays Research

January 17, 2025 — Barclays Research released a new report today titled "AI revolution: Meeting massive AI infrastructure demands." The report focuses on the US, the world leader in AI technology, and predicts that AI growth could cause data center usage to triple by 2030 potentially leading to a surge in energy consumption.

Barclays' estimates for data center usage are significantly higher than current predictions. The report explores the environmental implications of such rapid AI expansion.

“A thriving research and development ecosystem is vital to maintaining US leadership in AI innovation,” said Christian Keller, Head of Economics Research at Barclays. "The balancing act between achieving emissions targets while allowing responsible AI technology to advance is a global challenge."

The report highlights the need for collaboration between policymakers, tech companies, and the energy industry to ensure that AI development is sustainable.

Here are some key findings from the Barclays report:

• Data centers currently consume around 1%-1.5% of global electricity.
• By 2030, AI could cause US data center usage to surge from 150-175 terawatt hours (TWh) to 560 TWh, which is equivalent to 13% of current US electricity demand.
• This rapid growth in data center energy consumption could significantly hinder efforts to achieve net-zero emissions targets.

The Barclays report raises important concerns about the environmental impact of AI development. It is clear that we need to find ways to make AI more sustainable in order to ensure a greener future.

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