A new report from the International Energy Agency (IEA) offers groundbreaking insight into the growing connection between AI and energy. Key findings include:

AI will be the main driver of rising electricity use in data centres, which are projected to more than double their global electricity consumption by 2030, reaching 945 TWh — about the same as Japan’s current use.

In the U.S. alone, AI-driven data centres are expected to account for nearly half of electricity demand growth by 2030, surpassing demand from industries like steel and cement.

Renewables and natural gas are expected to meet most of this demand, thanks to cost and availability advantages.

While emissions from data centre electricity use will rise, AI also brings major potential to reduce emissions through energy efficiency, innovation, and optimization.

Cybersecurity and critical mineral demand are emerging energy security concerns, even as AI is used to strengthen defenses and accelerate materials science.

The report urges rapid investment in grids, clean generation, and data centre efficiency — plus stronger collaboration between governments, tech, and energy industries.

The IEA is also launching an AI agent and global observatory to track AI’s energy demands and emerging uses in the energy sector.