AI could ‘transform’ energy sector in years ahead

Artificial intelligence (AI) has the potential to transform the energy sector in the coming decade, according to a new report.

The International Energy Agency said as well as driving a surge in electricity demand from data centres, AI could also unlock significant opportunities to cut costs, enhance competitiveness and reduce emissions.

The report projects that electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh).

While the increase in electricity demand for data centres is set to drive up emissions, the increase could potentially be offset by emissions reductions enabled by AI if adoption of the technology is widespread.

As AI becomes increasingly integral to scientific discovery, the report said it could accelerate innovation in energy technologies such as batteries and solar PV.