The rapid expansion of artificial intelligence is placing unprecedented pressure on global electricity systems, with data centre power demand expected to triple and carbon emissions double by 2036, according to new research from IDTechEx.
The market intelligence firm says the industry must prioritise low-carbon electricity, energy efficiency and supply chain decarbonisation if it is to support AI growth sustainably.
Electricity availability is already becoming a major obstacle for new data centre developments, with lengthy grid connection delays driving operators to explore alternative power sources.
While gas turbines have provided a short-term solution, falling costs for solar generation paired with battery storage are making sustainable microgrids increasingly attractive.
The report also highlights growing investment in emerging clean energy technologies. Enhanced geothermal systems, hydrogen fuel cells and small modular reactors (SMRs) are attracting interest from hyperscale operators seeking reliable low-carbon electricity.
According to IDTechEx, SMRs could supply up to 15% of global data centre electricity demand by 2037, while established renewable technologies such as wind, solar and conventional nuclear power are expected to provide the majority of low-carbon electricity over the next decade.
As AI workloads continue to increase, operators are also redesigning facilities to improve efficiency.
The transition from air cooling to liquid cooling and the adoption of higher-voltage electrical architectures are expected to reduce energy consumption, greenhouse gas emissions and water use, although these technologies introduce additional cost and complexity.
Beyond operational emissions, the report identifies Scope 3 emissions as the largest source of carbon emissions across the data centre sector.
IDTechEx forecasts total annual data centre emissions will exceed 0.8 gigatonnes by 2036.
To reduce supply chain emissions, the report recommends greater use of carbon removal credits, low-carbon construction materials such as green steel and concrete and IT hardware with lower embodied carbon throughout a facility’s lifetime.
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