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Artificial intelligence (AI) is revolutionising many sectors of the economy, including the energy sector. The exponential growth of data centres around the world and in Europe is driving up electricity demand, raising questions about its impact on existing inBriefing - AI and the energy sector - 04-07-2025
Artificial intelligence (AI) is revolutionising many sectors of the economy, including the energy sector. The exponential growth of data centres around the world and in Europe is driving up electricity demand, raising questions about its impact on existing infrastructure and on sustainability. At the same time, AI can help transform energy systems by boosting energy efficiency, facilitating the integration of renewables and optimising electricity networks. According to the International Energy Agency, data centres currently account for only 1.5 % of global electricity consumption, but their electricity demand is expected to more than double by 2030. In the EU, data centres account for around 3 % of total electricity demand, but this varies between countries and is over 20 % in Ireland. AI-focused data centres tend to cluster in geographical locations, contributing to pressure on local grids and involving trade-offs with climate goals, land use and energy affordability. A ChatGPT query uses 10 times more electricity than a traditional Google search, although that depends on the complexity of the question and the format used (text vs. multimedia). A large data centre is estimated to consume as much electricity annually as 100 000 households. Data centres use energy not only to train and run AI models but also to cool servers and maintain equipment. Renewables and natural gas are the main energy sources used to power data centres globally, although nuclear (and, in the future, small modular reactors) is also on the rise. The EU's 2020 digital strategy called for data centres to become climate neutral by 2030. The 2023 EU Energy Efficiency Directive requires data centres to report on their energy consumption, water usage and use of renewable energy, and a 2024 EU scheme for rating the sustainability of data centres requires them to report on key performance indicators on energy and sustainability. Upcoming EU initiatives aim to balance ambitions on competitiveness and concerns over decarbonisation. The Cloud and AI Development Act, expected in the coming months, will aim to triple EU data centre capacity in the next 5-7 years, while the 'strategic roadmap for digitalisation and AI for the energy sector' and the 'data centre energy efficiency package', planned for early 2026, will address the energy impacts. Source : © European Union, 2025 - EP Read more
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