As the world grapples with the dual challenges of energy consumption and sustainability, three major players have emerged in the energy race: AI data centres, electric vehicles, and Bitcoin mining. Each of these sectors drives significant technological advancements, but they also come with sustainable energy demands. Analysing the latest data will give a clear picture of who is leading this energy-intensive race.
AI Data Centres
AI data centres are at the forefront of technological innovation, powering everything from advanced machine learning models to real-time data analytics. However, this comes at a cost. According to Goldman Sachs, AI is expected to drive a 160% increase in data centre power demand by 2030, with AI-related data centres consuming around 200 terawatt-hours (TWh) annually by 2028. This surge is attributed to the growing complexity and scale of AI workloads, which require massive computational power and significant energy resources.
Electric Vehicles
Electric vehicles are heralded as a key solution to reducing carbon emissions in the transportation sector. The global EV fleet consumed about 130 TWh of electricity in 2023, accounting for approximately 0.5% of the world’s total electricity consumption. This figure is expected to rise as EV adoption accelerates, with projections indicating that EVs could displace around 8.2 million barrels of oil daily by 2023. Countries like Norway and China are leading the charge, with EVs making up a significant share of new car sales.
Bitcoin Mining
Bitcoin mining is often criticised for its high energy consumption, but it is also crucial for securing the cryptocurrency network. As of 2024, Bitcoin mining’s annual energy consumption is estimated at around 176 TWh, which is comparable to the energy usage of entire countries like Poland and Egypt. Interestingly, the Bitcoin Mining Council reports that approximately 59.5% of the energy used in Bitcoin mining comes from sustainable sources, making it one of the more environmentally conscious sectors within the crypto industry.
So, who wins the energy race? It’s a complex question without a straightforward answer. AI data centres are poised to become the largest energy consumers due to exponential growth in AI applications. However, EVs offer a promising path to reducing fossil fuel dependence and cutting carbon emissions, making them a critical component of the global energy transition. Bitcoin mining, while energy-intensive, is increasingly leveraging sustainable energy sources, highlighting the industry’s efforts to mitigate its environmental impact.
