Gartner, Inc. warns of a potential energy crisis fueled by the rapid growth of AI and generative AI (GenAI). Data centers worldwide are struggling to meet the immense computational demands of these technologies, straining global power grids.
In their recent report, Gartner predicts a 160% increase in data center energy consumption over the next two years, driven by AI and GenAI. By 2027, many AI data centers may face operational constraints due to insufficient power supply.
“The rapid growth of new hyperscale data centers for GenAI is creating an insatiable demand for power that outstrips the capacity of utility providers,” said Bob Johnson, VP Analyst at Gartner. “This imbalance threatens to disrupt energy availability and lead to shortages, limiting the growth of new data centers and hindering the advancement of AI and other power-intensive technologies.”
The energy-intensive nature of AI comes with a high cost. Gartner estimates that the power required for data centers to run AI-optimized servers will reach 500 terawatt-hours (TWh) per year by 2027, a 2.6-fold increase from 2023 levels. This surge in demand will drive up electricity prices, increasing the cost of operating AI and GenAI applications.
The energy crisis threatens sustainability goals. To meet the soaring demand for power, many regions are resorting to less sustainable energy sources, like fossil fuels, increasing carbon emissions. While renewable energy sources like wind and solar power are promising, their intermittent nature makes them unreliable for powering data centers.
To mitigate the impact of AI on the environment, Gartner recommends organizations prioritize energy-efficient AI models, explore alternative computing paradigms like edge computing, and invest in innovative energy storage solutions. By adopting these strategies, organizations can alleviate the strain on the power grid and contribute to a more sustainable future.
