AI data centres to swallow 10% of global power surge - with US demand soaring to 40% by 2035, warns BP

"Artificial intelligence data centres are set to devour a massive share of the world's electricity growth over the next decade, according to BP's latest World Energy Outlook. The oil giant estimates that data facilities powering AI applications will account for 10% of global electricity demand growth by 2035. In the United States, the world's most advanced AI hub, that figure could skyrocket to 40%, raising urgent questions about the strain on energy systems."

"BP forecasts total global electricity demand to surge by 40% by 2035 and nearly double by 2050, largely driven by buildings, industry and transport electrification. But the rise of AI adds a new wildcard: data centre consumption is predicted to increase nine-fold by 2050, climbing from 1% of global usage in 2023 to 5% of what will then be a far larger total."

"The report delays the timeline for peak oil demand, revising projections upwards. BP now expects oil demand to reach 103.4 million barrels per day by 2030, up from last year's forecast of 101.2 million. The group also pointed to consumer behaviour as a key factor: motorists are holding on to older petrol cars for longer, with the average age of vehicles rising from 12 to 15 years over the past decade."

Artificial intelligence data centres are projected to consume a major share of future electricity growth, with AI-powered facilities estimated to account for 10% of global electricity demand growth by 2035 and up to 40% of US power demand growth. BP forecasts total global electricity demand to rise 40% by 2035 and nearly double by 2050, driven by buildings, industry and transport electrification. Data centre electricity use is expected to increase nine-fold by 2050, rising from 1% of global usage in 2023 to 5%. AI could raise global energy demand by 15% through productivity gains, but it could also reduce demand via efficiency improvements across industry and buildings. BP has pushed back the timing of peak oil, raising oil demand forecasts and noting motorists are keeping petrol cars longer, increasing average vehicle age from 12 to 15 years.

Read at Business Matters