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Home Artificial Intelligence (AI)

AI’s Energy Footprint Matters

Adam Smith – Tech Writer & Blogger by Adam Smith – Tech Writer & Blogger
May 20, 2025
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The Impact of AI on Energy Consumption

The rapid growth of artificial intelligence (AI) has led to significant advancements in various fields, but it also poses a challenge to our energy consumption. Graphics processing units (GPUs) that power the computing behind AI have fallen in cost by 99% since 2006. This reduction in cost has led to an increase in the use of AI, resulting in a rise in energy consumption.

The Rise of Data Centers

In the late 2010s, the trends that had saved us from high energy consumption began to break. As the accuracy of AI models improved, the electricity needed for data centers also started increasing faster. Data centers now account for 4.4% of total demand, up from 1.9% in 2018. In some states, such as Virginia, data centers consume more than 25% of the electricity supply.

Projections and Concerns

Projections about the future demand for energy to power AI are uncertain and range widely. However, one study estimated that data centers could represent 6% to 12% of total US electricity use by 2028. This rapid growth in electricity demand will put pressure on energy prices and ecosystems. To meet this demand, there are calls to build new fossil-fired power plants or bring older ones out of retirement.

The Bigger Picture

While the projected electricity use from AI is a concern, it’s still a relatively small part of the overall energy consumption. The US generated about 4,300 billion kilowatt-hours last year, and the projected increase in electricity demand from AI is estimated to be around 24% to 29%. Almost half of the additional electricity demand will come from electrified vehicles, and another 30% from electrified technologies in buildings and industry.

The Role of AI in Energy Consumption

The remaining 22% of new electricity demand is estimated to come from AI and data centers. While it represents a smaller piece of the pie, it’s the most urgent one. Because of their rapid growth and geographic concentration, data centers are the electrification challenge we face right now. We need to understand what the energy consumption and carbon emissions associated with AI are buying us. While the impacts from producing semiconductors and powering AI data centers are important, they are likely small compared to the positive or negative effects AI may have on applications such as the electricity grid, transportation system, buildings, and factories.

A "Grid New Deal"

To manage these new energy demands, we need a "Grid New Deal" that leverages public and private capital to rebuild the electricity system for AI with enough capacity and intelligence for decarbonization. New clean energy supplies, investment in transmission and distribution, and strategies for virtual demand management can cut emissions, lower prices, and increase resilience.

Conclusion

In conclusion, the growth of AI poses a challenge to our energy consumption, but it’s not an insurmountable one. With a "Grid New Deal" and a focus on clean energy, we can meet the increasing demand for electricity while reducing our carbon footprint. It’s essential to understand the impact of AI on energy consumption and to take steps to mitigate its effects.

FAQs

  • Q: How much have GPUs fallen in cost since 2006?
    A: GPUs have fallen in cost by 99% since 2006.
  • Q: What percentage of total demand do data centers account for?
    A: Data centers account for 4.4% of total demand, up from 1.9% in 2018.
  • Q: What is the projected increase in electricity demand from AI?
    A: The projected increase in electricity demand from AI is estimated to be around 24% to 29%.
  • Q: What is the "Grid New Deal"?
    A: The "Grid New Deal" is a plan to rebuild the electricity system for AI with enough capacity and intelligence for decarbonization, leveraging public and private capital.
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Adam Smith – Tech Writer & Blogger

Adam Smith – Tech Writer & Blogger

Adam Smith is a passionate technology writer with a keen interest in emerging trends, gadgets, and software innovations. With over five years of experience in tech journalism, he has contributed insightful articles to leading tech blogs and online publications. His expertise covers a wide range of topics, including artificial intelligence, cybersecurity, mobile technology, and the latest advancements in consumer electronics. Adam excels in breaking down complex technical concepts into engaging and easy-to-understand content for a diverse audience. Beyond writing, he enjoys testing new gadgets, reviewing software, and staying up to date with the ever-evolving tech industry. His goal is to inform and inspire readers with in-depth analysis and practical insights into the digital world.

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