WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 106
While data centers represent just one aspect of the IT sector,
they are the most concentrated in terms of energy consumption,
accounting for 460 TWh, approximately 2% of global electricity
demand in 2022, according to the International Energy Agency
(IEA).3 The electricity consumption magnitude of a country
like France!
This figure is expected to increase significantly given the
rising demand for new and advancing technologies, like AI
and generative AI, as well as blockchain and cryptocurrency
operations. By 2025, global data volume is expected to reach
175 zettabytes (ZB), a marked increase from the 2018 level of
33 ZB.4
While data center operators have been actively working on
energy efficiency improvements for decades and achieved
notable results, the rapid and substantial growth in data and
compute power requirements from intelligent technologies, AI,
IOT-enabled devices, and 5G, is outpacing these efficiency gains.
This growth is, in turn, putting immense pressure on some local
power systems and grids, which are struggling to provide the
necessary electricity at the required speed, especially during
peak periods.
To meet the growing demand for compute power while striving
to reduce their environmental impact, data centers need to
innovate and integrate more sustainable energy production
methods into their operations and even become energy
producers themselves. In this article, we explore how the
dual challenge of increasing energy efficiency and managing
escalating demand underscores the critical role of strategic
planning and technological advancements in the future of the
digital sector.
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The impact of data centers on the
grid
The energy profile of data centers has a unique impact on
the electric systems due to its relatively flat and stable
electricity consumption. Unlike other forms of energy usage
that experience significant variations throughout the day or
year, data centers maintain a consistent level of demand. This,
predictability, is advantageous for systems and grid operators,
as it allows for more accurate forecasting and planning.
In one way, this makes data centers a prime opportunity to
be served through decarbonized energy sources. However, to
enable this shift, organizations must address the challenges of:
• Energy storage since renewable energy sources are
intermittent while data center needs are constant.
• Local production to avoid grid developments.
At the same time, there are potential drawbacks: If data centers
switch from the grid to backup generators, it often means
that they will shift from clean energy to fossil fuels. This can
negate or undermine the environmental benefits of using green
energy sources.
1 UN Trade & Development: Digital Economy Report 2024. https://unctad.org/publication/
digital-economy-report-2024
2 UN Trade & Development: Digital Economy Report 2024. https://unctad.org/publication/
digital-economy-report-2024
3 IEA: Electricity 2024. https://iea.blob.core.windows.net/assets/18f3ed24-4b26-4c83-a3d28a1be51c8cc8/Electricity2024-Analysisandforecastto2026.pdf
4 IDC: Data Age 2025. https://www.seagate.com/files/www-content/our-story/trends/files/
Seagate-WP-DataAge2025-March-2017.pdf
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The digital economy accounts for approximately 6-12% of
global electricity consumption, translating to 1-2% of global
energy use.1 This results in an estimated 0.69-1.6 gigatons of
CO2 emissions, or about 1.5-3.2% of global greenhouse gas
emissions in 2020.2
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This issue highlights the need for sustainable backup and storage
solutions, as well as local green electricity production to ensure
that the environmental impact of data centers is optimized even
during power disruptions.
WEMO 2024
How to meet Data center AI/
Gen AI consumption increase?
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