IEA Launches Energy and AI Observatory to Track AI's Global Energy Impact

Interactive IEA tracker shows AI's global energy footprint

Observatory maps datacenter hubs and power demand worldwide The International Energy Agency (IEA) has unveiled an online platform to closely monitor and analyze the impact of AI across the energy sector worldwide. The Energy and AI Observatory sports interactive tools to explore datacenter electricity consumption and the scale of digital infrastructure by region, and provides case studies to illustrate how AI is being deployed across the energy sector itself, as well as its effects. It follows the publication earlier this year of a report from the IEA estimating that energy consumed by bit barns worldwide is set to more than double by 2030, surpassing that currently used by all of Japan. AI is the driver of most of this; the energy required by "AI-optimized" datacenters is projected to outpace the rest and more than quadruple by the end of the decade. However, the same report also claimed that AI is already being deployed in the energy industry to optimize systems, minimize greenhouse gas emissions, and cut costs. Divided into two main sections, the Observatory features an interactive map showing the locations of datacenter hubs and their capacity - both operating and planned - alongside major telecoms and high voltage distribution cable networks. It notes that gigawatt-scale clusters have emerged in specific regions of North America, Europe, and Asia-Pacific, thanks to large-scale investment in the infrastructure that is used used in the development and training of AI models. Other charts show the total global installed bit barn capacity, illustrating how it has accelerated in recent years (doubling since 2020), the installed capacity by region (spoiler: the US is by far the largest), and datacenter capacity as a share of regional energy demand. Meanwhile, the "AI for energy" section details use cases such as energy price forecasting using AI tools; AI-driven models for electricity access forecasting; and building-level electricity planning using AI models. According to the IEA, the Observatory was first announced by executive director Fatih Birol at the AI Action Summit held in Paris in February, and aims to inform national and international policy on energy and AI topics, including ongoing dialog between government and industry. "The IEA is at the forefront of efforts to understand and manage the significant links between energy and artificial intelligence, which is quickly emerging as one of the most important technologies of our time," said Birol. He added that the Observatory would support decision-makers around the world in planning for the future, stressing the importance of reliable data and analysis in such a fast-moving sector. An earlier IEA report also warned that the world is going to need a lot more electricity generation capacity within the next three years to keep up with an unprecedented spike in demand, though it isn't just AI and datacenters to blame. Increasing use of air conditioning, heat pumps, the electrification of industrial processes and electric vehicles are all taking their toll as well. ®

IEA's New Energy and AI Observatory to Monitor AI's Impact on Global Energy Systems | AIM

Currently, case studies from the observatory show how AI is already cutting emissions and improving energy efficiency across industries. As the rise of AI increases demand for data centres, it places significant pressure on energy systems while also enabling new efficiencies. The International Energy Agency (IEA) has launched a new Energy and AI Observatory, aiming to analyse the growing interconnections between the AI and energy systems and address the challenges. The platform is equipped with tools to understand datasets on data centre electricity consumption and digital infrastructure by region. "Building on our recent major report on this subject, this new Energy and AI Observatory, developed in consultation with a wide range of partners, underscores our commitment to supporting decision makers around the world as they plan for the future. Reliable data and analysis are the cornerstone of navigating this fast-moving space," Fatih Birol, executive director of the IEA, said. The observatory was initially announced in February at the AI Action Summit. In April, an IEA publication titled Energy and AI highlighted that electricity demand from AI-optimised data centres is projected to more than quadruple by 2030. Given the uncertainty around how this demand will evolve, the report calls for a scenario-based approach to guide timelines and decisions across the energy sector. Currently, 20 case studies in the observatory feature how AI is deployed across the energy sector. They explore a wide spectrum of AI applications, from optimising heating and cooling systems to improving industrial gas use, increasing waste heat recovery, and enhancing grid and renewable energy efficiency. One of them concerns the Infosys-owned and operated smart campus in Pune. Even before adopting AI, the campus had an energy performance index (EPI) of 70, far below the Indian benchmark of 180 for energy-efficient buildings. With AI and machine learning, Infosys further optimised operations by predicting demand and automating energy use. In six months, energy efficiency improved by 7%, on-site generation rose by 5%, and carbon emissions fell by 7,900 tonnes. These case studies signal how AI can help balance rising energy demand with sustainability, making the observatory a key tool for future energy planning.