But will there be enough power to run AI?

8th January 2025 |   Journal Of Sales Transformation

Artificial intelligence and generative AI are driving rapid increases in electricity consumption, with data centre forecasts over the next two years reaching as high as 160% growth, according to technology analysts Gartner. Some 40% of existing AI data centres will be operationally constrained by power availability by 2027, Gartner predicts.

Gartner estimates the power required for data centres to run incremental AI-optimized servers will reach 500 terawatt-hours (TWh) per year in 2027, which is 2.6 times the level in 2023.

“The explosive growth of new hyperscale data centres to implement Gen AI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough,” Bob Johnson, VP Analyst at Gartner, told the Journal. “In turn, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centres for Gen AI and other uses from 2026.”

This could be bad news for the environment. “The reality is that increased data centre use will lead to increased CO2 emissions to generate the needed power in the short-term,” said Johnson. “This, in turn, will make it more difficult for data centre operators and their customers to meet aggressive sustainability goals relating to CO2 emissions.”