The International Energy Agency, which models global demand for electricity and liquid fuels, says AI is both a challenge and opportunity for energy utilities and end-users.
Electricity demand from AI data centers and other centralized computing facilities will double over the next five years, the IEA says, straining the power grid in some regions and increasing the risk of blackouts for customers. At the same time, widespread, AI-supported interventions to improve building efficiency could reduce annual global power demand by 300 terawatt-hours, equivalent to taking Australia and New Zealand off the grid, the agency says.
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