The International Energy Agency released a policy report on October 14 examining electricity rates, carbon emissions and water use associated with the expansion of AI data centers. "Powering Artificial Intelligence" surveyed policies, regulations and corporate strategies related to data center grid connections across 34 jurisdictions, covering approximately 90% of global data center capacity.
The IEA identified 134 relevant policies and regulations. Approximately 40% were announced or implemented in the past 12 months. The most common policy area was identifying the scale, timing and location of data center electricity demand.
According to the report, carbon dioxide emissions from data center electricity use currently total approximately 150 million tonnes. Under the IEA's base scenario, they could rise to approximately 350 million tonnes in 2035, equivalent to about 1.5% of global energy-related emissions that year. Approximately 40% of identified AI-specific data center capacity is located in areas classified as having high or very high water stress.
The report identified water and electricity efficiency as issues that need to be considered together. Cooling equipment that reduces water use tends to increase electricity consumption, and the reverse trade-off also applies. According to the IEA's analysis, electricity generation accounts for the largest share of water use in the data center value chain.
Whether data center expansion raises electricity bills for other consumers depends on investment in grids and generation facilities and how costs are allocated. If all users bear the cost of new facilities, this can put upward pressure on rates. However, using existing facilities more efficiently and having data centers share costs could also reduce the burden on electricity bills. The IEA proposed policy principles including transparency in demand information, integrated consideration of energy and water efficiency, and tariff structures that fairly allocate the costs and risks of large electricity loads.
Original Korean article: VeganNews
English brief by Korea Wind Intelligence, koreawindintel.com
