Growth in AI Data Centers to Drive Demand for Gas and Coal Power Plants, IEA Report Says
A recent report from the International Energy Agency (IEA) predicts that the increasing focus on artificial intelligence (AI) in data centers will lead to a surge in demand for gas- and coal-fired power plants.
By 2030, the IEA anticipates that power demand from data centers will double. While renewable energy sources are expected to grow, particularly in Europe, the intermittent nature of wind and solar power may not be sufficient to meet the needs of data centers. Gas-fired power plants, with their ability to provide baseload generation, are likely to be the best fit for the energy demands of data centers, according to the agency.
The energy requirements of some of the largest planned data centers are equivalent to powering five million homes, highlighting the significant impact on greenhouse gas emissions.
In the United States, which is the largest market for data centers, gas currently supplies 40% of the demand and is expected to fuel most of the capacity expansion through 2030, as per the IEA. President Donald Trump recently signed measures aimed at boosting coal production within the US to support the growing energy needs of data centers and revitalize the country’s fossil fuel industry.
China, the second-largest market for data centers, already relies heavily on coal for power generation, according to the IEA.
The IEA foresees a wide range of potential power demand scenarios for data centers by 2035, with estimates varying between 700 and 1700 terrawatt-hours. This uncertainty underscores the significant impact on the projected need for gas and nuclear power.
