AI-Driven Energy Crisis Concerns: India’s Electricity Consumption to Triple by 2030

Artificial intelligence (AI) is heralded as a groundbreaking advancement worldwide, promising transformative changes across various sectors. However, accompanying this optimism is a concern. 

Scientists express apprehensions about the potential job displacement due to AI’s ability to surpass human intelligence and become increasingly proficient. There’s also a growing concern about the environmental ramifications. AI necessitates substantial computing power, which is anticipated to significantly strain energy resources.

ARM Holdings Predicts India to Become a Leading Consumer of Electricity by 2030

According to Rene Haas, the CEO of British semiconductor and software design company ARM Holdings plc, the direction for computing until 2030 suggests that India, already one of the world’s largest data centers, will increasingly rely on electricity. 

As per the International Energy Agency, India is projected to become the third-largest electricity producer and consumer globally.

Energy Concerns Amidst AI Advancements

According to Haas, efforts to enhance AI systems could triple energy consumption, a matter of serious concern. Future reliance on software and data will escalate energy usage due to their widespread application. 

Haas is among those expressing worries about the impact of AI on global infrastructure and the environment, concerns shared by many. 

However, Haas’ interest lies in the fact that the AI industry is adopting semiconductor chips designed by ARM, the company she leads. ARM, having conducted the largest IPO in the United States in 2023, is at the forefront of this trend.

ARM’s Energy-Efficient Technology Revolutionizes Data Centers

The company’s technology, long utilized in smartphones, was developed to efficiently utilize energy compared to traditional server chips. Major companies like Amazon, Microsoft, and Alphabet are incorporating ARM’s technology into their server chips. 

According to a report, U.S. data centers could consume 35,000 megawatts of electricity in the next six years. To put this into perspective, 1 megawatt can power roughly 750 American homes.

In individual terms, American households use about 25 times the electricity of Indian households and roughly three times that of Chinese households.

AI’s Role in Reducing Energy Consumption in Data Centers

By 2030, data centers are expected to reduce their electricity consumption by 21%. The airline industry stands as a significant emitter of carbon globally, and now, the AI industry aims to surpass it. 

However, transparency regarding carbon emissions in the AI industry, especially concerning carbon offsets, remains elusive. Popular AI models like ChatGPT consume considerable amounts of energy.

Currently, there are over 8,000 data centers worldwide, with nearly 40% located in the United States alone. In 2022, these centers were estimated to consume around 17,000 megawatts of electricity.