5 March 2025

Busting the top myths about AI and energy efficiency 

Josh Parker

The rapid growth of AI in recent years has sparked an unprecedented rush of investment in data centers worldwide to develop the next generation of algorithms, fueling concerns that running these systems will push the world toward an energy crisis.

However, to determine the true impact of AI on global energy consumption, consider the full picture:  
  • AI computing still makes up a tiny slice of the world’s energy consumption. Data centers accounted for about 2 percent of energy-related carbon emissions in 2022, according to the International Energy Agency—and today, not all data centers run AI. 
  • AI, powered by rapidly advancing accelerated computing technology, is becoming much more energy efficient every year. 
  • AI delivers insights and results that can increase energy efficiency in the domains that use energy the most—including energy generation, manufacturing, transportation, and residential heating and cooling.
Recent advancements in AI and accelerated computing have enabled developers to harness more computational capabilities while using less energy. Some—in climate science, financial services, and healthcare—already are. But to achieve widespread adoption, it’s critical to separate misconceptions from reality. 

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