Energy and AI Explained | How Artificial Intelligence Is Transforming Global Electricity Demand

Zema Academy Presents: Energy and AI Explained | How Artificial Intelligence Is Transforming Global Electricity Demand This explainer video breaks down the major findings from the International Energy Agency’s special report “Energy and AI” (2025). The report provides the first comprehensive global analysis of how artificial intelligence is transforming the energy sector — and how the growth of AI is reshaping global electricity demand. In this video, we cover: • How AI demand is driving a surge in data centre electricity consumption Data centres already consume around 1.5 percent of global electricity (415 TWh in 2024) and this is expected to more than double to 945 TWh by 2030, mainly driven by AI systems. • Why AI model training and inference require massive energy The largest AI-focused data centres can consume as much electricity as 2 million households. • The growing strain on electricity grids Grid congestion, long connection queues, and hardware bottlenecks could delay up to 20 percent of new data centre projects. • How AI can boost energy efficiency AI can improve forecasting, cut grid faults by 30–50 percent, unlock up to 175 GW of transmission capacity without new lines, and deliver major energy savings in industry, buildings, and transport. • AI for innovation AI accelerates breakthroughs in batteries, CO₂ capture materials, catalysts, and clean-energy technologies — reducing the time from discovery to commercialisation. • The energy security implications of AI Demand for critical minerals, cybersecurity risks, and supply chain vulnerabilities are all intensifying. At the same time, AI strengthens monitoring and improves protection of critical energy infrastructure. This video provides a clear, accessible summary for policymakers, companies, researchers, and anyone interested in how AI is reshaping the global energy system. Source: IEA (2025). World Energy Outlook Special Report: Energy and AI. #EnergyAndAI #IEA #ArtificialIntelligence #DataCenters #EnergyTransition #ElectricityDemand #CleanEnergy #Digitalisation #AIInnovation #SmartGrids #SustainableEnergy #FutureOfEnergy