The World's Top Energy Watchdog Made the Bull Case for AI Power Stocks. Here's the Number That Matters.
Key PointsThe International Energy Agency recently released a report about AI, noting that "there is no AI without energy."
The International Energy Agency (IEA) has made a compelling case for investing in artificial intelligence (AI) power stocks, with a key figure to watch. By 2024, electricity demand from AI data centers is expected to double from 415 terawatt-hours (TWh) to 945 TWh, and this demand could nearly triple to 1,200 TWh by 2035. This presents a significant opportunity for power providers, given the rapid growth of AI data center electricity use.
In fact, the IEA notes that electricity demand from AI in 2030 will surpass Japan's current power consumption. While AI's global reach means the demand isn't concentrated in one area, the fact remains that data center electricity use has been surging at 12% annually since 2017, outpacing overall consumption growth by more than fourfold.
This trend is a major driver in the power sector, making it essential to consider in the context of AI's expanding influence.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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