AI Revolution to Triple Europe’s Electricity Consumption by 2030

Europe’s data centres are poised for a dramatic surge in energy consumption by the end of this decade, driven by the rise of artificial intelligence (AI) applications and other digitisation projects.

A recent forecast by consultancy firm McKinsey & Company projects that electricity demand could nearly triple, surpassing 150 terawatt-hours (TWh) annually by 2030. Diego Hernández Díaz, a partner at McKinsey, explained, “This increase represents approximately 5% of Europe’s total electricity consumption, up from the current 2%.”

The study highlights the potential environmental repercussions of this surge in energy demand. If the additional electricity required for AI and data centres is not sourced from renewable energy, the trend could accelerate climate change. Currently, a significant portion of the energy powering data centres still comes from fossil fuels.

Díaz emphasised the challenges posed by this shift, noting that clean and reliable electricity sources are available only on a limited scale. He also pointed to a shortage of specialised technical personnel as an obstacle to meeting the sector’s growing demands.

To address these challenges, McKinsey’s report underlines the necessity of substantial investments in renewable energy infrastructure. Without such measures, the energy-intensive growth of AI technologies could pose a major hurdle to Europe’s climate goals.

 

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