AI to drive data center power demand surge to 160 per cent by 2030: Report

A report by Goldman Sachs has said that the artificial intelligence(AI) revolution will require a huge amount of electricity. It also said that the data centers powering the AI revolution will drive power consumption by a whopping 160 percent by 2030.

Globally, there had been a flat demand for around a decade. However, the AI revolution will transform the global energy landscape.

"Data center power usage is expected to increase by +160 per cent by 2030, driven by energy-intensive AI data centers," the report said.

The report also noted thatpower generation is only one part of the issue. Transmission is also a bottleneck in running new power plants.

It also said that in the United States, most data centers are powered by natural gas, as it is abundant in the country.

However, challenges in permitting, transmission, and critical supply chains – such as those related to gas turbines – have led to long timelines of around 5-7 years for getting new natural gas plants operational and connected to the grid.

It said 60 percent of the data center power demand will have to be fulfilled with new capacity. The new capacity will be built using30 per cent natural gas combined cycle gas turbine (CCGT), 30 per cent natural gas peakers, 27.5 per cent solar, and 12.5 per cent wind.

It further said thatnatural gas remains a key source of power.

Big companies are planning to meet their energy demands bycombining different power sources. They are also investing in long-term solutions such as nuclear energy, the report noted.

The report cited Alphabet's recent agreement with Elementl Power to pre-position three sites for advanced nuclear energy.