The amount of electricity needed to power the world’s data centres is expected to double in the next five years, according to the International Energy Agency (IEA).
It will come as racks of servers hosting the latest AI models and cloud computing services use three times more electricity than the UK each year, the agency added.
The rise in demand, predicted to be highly concentrated around the world’s tech and population hubs, will put pressure on utility companies, grid infrastructure and the planet.
Image: Fatih Birol, executive director of the IEA
“AI is one of the biggest stories in the energy world today,” says Fatih Birol, executive director of the IEA.
“In the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
In the US, data centres, largely being built to train and operate AI, are expected to consume more electricity by 2030 than the manufacturing of all the nation’s energy-intensive goods including aluminium, steel, cement and chemicals, a report from the IEA found.
But the agency also predicts that AI will be an essential tool in informing how to manage future energy demand, engineer more efficient data centres and accelerate the development of new, cleaner sources of electricity generation.
Two main shifts have driven the AI revolution and its incredible demand for power.
The cost of “compute” – the processors and associated servers to build data centres – has fallen by 99% since 2006.
Whereas the amount of compute being used to train and run state-of-the-art AI models has increased by a mind-boggling 350,000-fold in just a decade.
Depending on the energy sources used, AI development could drive up carbon emissions and water consumption needed for cooling servers.
American tech firms are already struggling to find enough power to run their growing data centre needs, as well as the computing hardware needed to run them.
A survey by Reuters of 13 major US power providers found nearly half have received requests from data companies for power that would exceed their current peak demand.
It’s one of the key uncertainties in the IEA report.
Unlikely to risk blackouts to meet AI energy demand, countries aggressively pursuing AI development will need to build far more electricity generation.
It’s not clear how quickly that might happen and also how quickly the energy efficiency of data centres and the AI models they are running improves.
One of the greatest uncertainties are Donald Trump’s tariffs, introduced after the report was completed.
Yet the US president’s attack on the global trade status quo could directly and significantly impact data centre and AI development in the US and beyond.
High tariffs on China are predicted to choke off supplies of raw materials needed to build new energy infrastructure.
In particular, those for low-carbon energy sources like solar panels, wind turbine motors and batteries to store renewable electricity.
Demand for low-carbon generation was surging in the US before Mr Trump’s election – a large chunk of that coming from tech companies wanting to power data centres.
The US president has promised to boost US coal production to power AI, but it’s far from certain if power companies will choose to build new plants given their high cost relative to some low-carbon alternatives.
The time they take to build could also mean electricity supply will lag well behind the IEA’s forecast for data centre electricity demand.
China, on the other hand, already gaining fast on the US in terms of AI development, may find low-carbon electricity gets cheaper and quicker to build if its clean energy exports to the US dry up due to tariffs.
The White House is considering inviting Volodymyr Zelenskyy to a meeting between Donald Trump and Vladimir Putin in Alaska, according to reports in the US.
A senior US official and three people briefed on internal discussions have told Sky News’ US partner network NBC News that the Trump administration is now considering inviting the Ukrainian president to the summit.
“It’s being discussed,” one of the people briefed on the talks was quoted as saying.
The sources said a visit by Mr Zelenskyy has not been finalised – and it is unclear whether the Ukrainian leader will be in Alaska for the summit.
However, the senior administration official said it is “absolutely” possible.
“Everyone is very hopeful that would happen,” the official said.
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Asked whether the US had officially invited Mr Zelenskyy to Alaska, a senior White House official said: “The President remains open to a trilateral summit with both leaders. Right now, the White House is focusing on planning the bilateral meeting requested by President Putin.”
Mr Trump told reporters at the White House on Friday before the Alaska summit was confirmed that “we’re getting very close to a deal” that would end the war.
The US president added there will be “some swapping of territories to the betterment of both sides”.
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1:31
US diplomacy ‘totally amateur’
Zelenskyy suggests he’s unwilling to give up territory
However, the Ukrainian president warned on Saturday that allowing Russia to keep territory it has occupied in Ukraine will result in another invasion.
He said allowing Mr Putin to annex Crimea in 2014 didn’t prevent Russia forces from occupying more parts of Ukraine during the current conflict.
Mr Zelenskyy added: “Now, Putin wants to be forgiven for seizing the south of our Kherson region, Zaporizhzhia, the entire territory of Luhansk and Donetsk regions, and Crimea. We will not allow this second attempt to partition Ukraine.
“Knowing Russia – where there is a second, there will be a third.”
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2:28
Zelenskyy: Ukraine will not give land to ‘occupier’
NATO allies say Ukraine must be involved in negotiations
The reports Mr Zelenksyy could be invited to Alaska come as Ukraine and several NATO allies have reportedly been privately concerned Mr Trump might agree to Mr Putin’s proposals for ending the war without taking their positions into account.
In a joint statement on Saturday night, UK Prime Minister Sir Keir Starmer and the leaders of France, Italy, Germany, Poland, Finland and the European Commission said Ukraine’s future cannot be decided without Kyiv.
They said: “Ukraine has the freedom of choice over its own destiny. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities.
“The path to peace in Ukraine cannot be decided without Ukraine.
“We remain committed to the principle that international borders must not be changed by force.
“The current line of contact should be the starting point of negotiations.”
Image: From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP
UK hosts Ukrainian officials ahead of summit
British Foreign Secretary David Lammy had earlier hosted a meeting of top Ukrainian officials and European national security advisers alongside US vice-president JD Vance on Saturday ahead of the Trump-Putin meeting.
The meeting took place at the foreign secretary’s official country retreat, Chevening, in Kent, where Mr Vance is staying at the start of a UK holiday.
After the meeting, Mr Lammy said: “The UK’s support for Ukraine remains ironclad as we continue working towards a just and lasting peace.”
Image: From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy
It is understood that the meeting had been called at Washington’s request, and included representatives from the US, Ukraine, France, Germany, Italy, Finland and Poland as well as the UK.
Ukraine was represented by Rustem Umerov, secretary of the country’s national security and defence council, and the head of Mr Zelensky’s office, Andriy Yermak.
In a post on social media, Mr Yermak said the allies’ positions were “clear” that “a reliable, lasting peace is only possible with Ukraine at the negotiating table, with full respect for our sovereignty and without recognising the occupation”.
Ahead of the meeting at Chevening, Sir Keir discussed the talks in a call with Mr Zelenskyy on Saturday and also spoke to French President Emmanuel Macron.
A Downing Street spokeswoman said Sir Keir and Mr Macron “discussed the latest developments in Ukraine, reiterating their unwavering support for President Zelenskyy and to securing a just and lasting peace for the Ukrainian people”.
Although close to Russia geographically – less than three miles away at the narrowest point – it’s a very long way from neutral ground.
The expectation was they would meet somewhere in the middle. Saudi Arabia perhaps, or the United Arab Emirates. But no, Vladimir Putin will be travelling to Donald Trump’s backyard.
It’ll be the first time the Russian president has visited the US since September 2015, when he spoke at the UN General Assembly. Barack Obama was in the White House. How times have changed a decade on.
The US is not a member of the International Criminal Court, so there’s no threat of arrest for Vladimir Putin.
But to allow his visit to happen, the US Treasury Department will presumably have to lift sanctions on the Kremlin leader, as it did when his investment envoy Kirill Dmitriev flew to Washington in April.
And I think that points to one reason why Putin would agree to a summit in Alaska.
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Instead of imposing sanctions on Russia, as Trump had threatened in recent days, the US would be removing one. Even if only temporary, it would be hugely symbolic and a massive victory for Moscow.
The American leader might think he owns the optics – the peace-making president ordering a belligerent aggressor to travel to his home turf – but the visuals more than work for Putin too.
Shunned by the West since his invasion, this would signal an emphatic end to his international isolation.
Donald Trump has said a ceasefire deal is close. The details are still unclear but there are reports it could involve Ukraine surrendering territory, something Volodymyr Zelenskyy has always adamantly opposed.
Either way, Putin will have what he wants – the chance to carve up his neighbour without Kyiv being at the table.
And that’s another reason why Putin would agree to a summit, regardless of location. Because it represents a real possibility of achieving his goals.
It’s not just about territory for Russia. It also wants permanent neutrality for Ukraine and limits to its armed forces – part of a geopolitical strategy to prevent NATO expansion.
In recent months, despite building US pressure, Moscow has shown no intention of stopping the war until those demands are met.
It may be that Vladimir Putin thinks a summit with Donald Trump offers the best chance of securing them.
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