Cryptocurrency, AI Could Double Global Power Use by 2026, Says IEA
Summary:
The International Energy Agency (IEA) has reported significant anticipated shifts in global energy consumption patterns. While consumption growth fell from 2.4% in 2022 to 2.2% in 2023, it is projected to rise to 3.4% through 2026, significantly influenced by China and India. Power usage in data centers, artificial intelligence, and cryptocurrency may more than double in the same timeframe. The IEA indicates that these sectors, particularly cryptocurrency, could be causes for concern due to their high energy consumption in spite of energy-saving efforts.
Global changes in the electrical domain are imminent as the sector pioneers in decarbonization and meets transforming consumption patterns. Anticipated alterations in the energy landscape ahead include a significant shift towards artificial intelligence (AI) and cryptocurrency mining, according to the International Energy Agency (IEA), an intergovernmental body. Through to 2026, the IEA's 2024 report indicates that not all updates about power consumption are troublesome. "While power production currently tops the charts as the world's largest CO2 emitter, it's also at the forefront of the transition towards eliminating emissions," states the report. It projects that renewable energy sources would headline power sources beginning 2025.
From 2.4% in 2022, consumption growth slipped to 2.2% in 2023, with an estimated upturn to 3.4% expected up to 2026. China and India will significantly contribute to that growth. In contrast, power usage in data centers, crypto, and AI may more than double over the same period, crossing 1,000 terawatt-hours (TWh), with a third of all such data centers being based in the U.S.
AI will spearhead this growth, with its power usage set to rise ten times over from 2023 to 2026. For instance, ChatGPT alone is projected to utilize up to 10 TWh annually within that period, with each ChatGPT demand requiring roughly ten times the energy of a Google search.
One terawatt-hour could fuel 70,000 American homes for a year, putting the crypto-related power consumption at par with Japan. In 2023, Bitcoin accounted for 120 TWh of energy usage, part of the 130 TWh overall used in crypto operations, which increased from 110 TWh the previous year. Crypto mining's energy usage is foreseen to reach 160 TWh by 2026, as per IEA's estimates.
Although the issues around reducing power consumption remain challenging, particularly because energy savings can be negated by increased energy use in other fields such as different cryptocurrencies, crypto was singled out in the report as a cause for worry. While reportedly utilizing 54.5% sustainable energy, Bitcoin mining is gearing up with heavy investment in new equipment ahead of the Bitcoin halving.
Published At
1/26/2024 12:40:22 AM
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