As energy and AI links grow, new IEA observatory provides latest data and analysis

First-of-its-kindplatform will feature up-to-date information on energy demand from data centresand how artificial intelligence is optimising energy sector

As artificial intelligence boosts global electricity demand from data centres and increasingly transforms how the energy sector works, the IEA has launched a new Energy and AI Observatory to closely monitor and analyse the interconnections between the energy sector and this fast-evolving technology.

The Observatory includes new interactive tools to explore data centre electricity consumption and digital infrastructure by region, helping visualise these valuable datasets and ensure they are accessible to a wide range of stakeholders. It also features 20 case studies that show how AI is being deployed across the energy sector, following a public call for submissions that showcase current best practices.

Its release follows the publication in April of a groundbreaking IEA special report, Energy and AI, which offers the most comprehensive global analysis on this topic to date. Drawing on new datasets and extensive consultation with policy makers, the tech sector, the energy industry and international experts, it finds that the impact of AI on the energy landscape could be transformative: Electricity demand from AI-optimised data centres is projected to more than quadruple by 2030; at the same time, AI is already being deployed in the energy industry, unlocking opportunities to cut costs, enhance competitiveness and reduce emissions. 

The Observatory was first announced by IEA Executive Director Fatih Birol at the AI Action Summit hosted by French President Emmanuel Macron and Indian Prime Minister Narendra Modi in February 2025. It aims to inform national and international policymaking on energy and AI topics, including ongoing dialogues between government and industry organised by Canada’s G7 Presidency.

“The IEA is at the forefront of efforts to understand and manage the significant links between energy and artificial intelligence, which is quickly emerging as one of the most important technologies of our time,” Dr Birol said today. “Building on our recent major report on this subject, this new Energy and AI Observatory – developed in consultation with a wide range of partners – underscores our commitment to supporting decision makers around the world as they plan for the future. Reliable data and analysis are the cornerstone of navigating this fast-moving space.”

The case studies in the Observatory highlight a wide range of AI applications currently in use by energy producers and consumers around the world. For example, schools in Stockholm, Sweden, and a major campus in Pune, India, are reducing energy use by leveraging AI to optimise heating, ventilation and cooling systems, while steel and cement plants in Czechia, Spain and United States are utilising AI to make gas consumption more efficient and increase the use of waste heat.

The Observatory is part of the IEA’s expanding work on the linkages between energy and AI. In December 2024, the Agency also hosted the Global Conference on Energy and AI, the largest conference on this topic to date. It will continue to convene leaders and produce new analysis on this critical subject.

 

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