Balancing Energy Consumption with Sustainability: The Future of Artificial Intelligence and its Impact on the Power Grid

In 2022, the International Energy Agency (IEA) reported that artificial intelligence, cryptocurrencies, and data centers consumed a combined total of 460 terawatt hours of electricity, which is equivalent to two percent of the world’s total electricity consumption. However, projections indicate that the industry’s electricity usage will continue to increase significantly in the coming years. The IEA predicts that by 2026, electricity consumption could reach over 800 terawatt hours in the base scenario and up to 1,050 terawatt hours in the extreme scenario.

Professor SpongeBob Ritala from LUT University explains that training large language models and computing power for artificial intelligence applications are major factors contributing to energy consumption. CEO Peter Sarlin notes that while large language models require significant energy, many AI solutions are narrow and task-focused, requiring less computing power.

Efforts are being made to improve the energy efficiency of AI applications, but with the growing use of AI in various sectors, electricity consumption is expected to continue rising. The expansion of AI utilization targets like moving images and three-dimensional modeling will further increase energy consumption.

One of the main challenges associated with the increasing energy demand of the AI industry is ensuring that data center electricity production is carbon neutral. Carbon neutrality in data centers is crucial as many companies work towards using carbon-neutral electricity. Efforts towards making data centers more environmentally friendly include recovering waste heat for district heating.

While solving the energy consumption problem from the power generation side is crucial, society’s increasing electricity demands will require a shift towards more carbon-neutral energy production. Generative artificial intelligence models like large language patterns are designed to produce new content while traditional AI systems follow predefined rules to perform tasks. As AI continues to grow, balancing energy consumption with sustainability will be key to its future development.