AI could consume more power than Bitcoin by the end of 2025
1 min read
Summary
Artificial Intelligence (AI) could consume almost half of all the electricity utilised by data centres globally by the end of 2025, according to estimates by Alex de Vries-Gao, a PhD candidate at the Vrije Universiteit Amsterdam Institute for Environmental Studies.
AI already uses approximately 20% of the electricity consumed by data centres and, despite efficiency gains, the technology’s overall appetite is increasing, placing a strain on power grids and potentially hindering efforts to migrate to cleaner energy sources.
Taiwan Semiconductor Manufacturing Company’s production capacity for AI chips more than doubled between 2023 and 2024, and it is expected that this growth will continue, potentially causing a 23GW power demand for AI by the end of 2025.
The growth of AI has parallels with the adoption of cryptocurrencies, which used a ‘bigger is better’ mindset to intensify energy consumption, causing environmental advocates to call for other blockchain networks to adopt less energy-intensive strategies.
Furthermore, the Jevons paradox could become a factor, where more efficient AI models are used more frequently, incrementally increasing overall electricity consumption.