Power Hungry: How AI Will Drive Energy Demand Report

Current context: The International Monetary Fund (IMF) forecasts artificial intelligence (AI) will boost global GDP by 0.5% annually from 2025-2030, with growth surpassing the environmental costs of increased emissions from data centres.

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• Launched by: International Monetary Fund (IMF)
• Energy Consumption Surge: Global electricity demand may triple to 1,500 terawatt-hours (TWh) by 2030, increasing emissions by 1.2%.
• Environmental Implications: AI-related emissions could cost $50.7–66.3 billion, exacerbating climate concerns.
• Energy Efficiency Potential: AI could improve energy efficiency and reduce emissions with targeted policies and R&D (Research and Development).
• Role of Policy and Industry: Collaboration among governments, tech companies, and energy sectors is essential to ensure AI benefits the environment and addresses inequalities.