A global digital transformation is being fuelled by artificial intelligence (AI), cloud computing and the Internet of Things (IoT).
The resulting increase in global electricity demand means we need to find more sustainable ways to harness digital innovation.
In countries such as Qatar, solutions are being developed through proactive efforts by governments, policy-makers and businesses.
세계경제포럼, 2025년 7월 21일 게시
Ali Alwaleed Al-Thani
Chief Executive Officer, Investment Promotion Agency Qatar (Invest Qatar)
Santiago Banales
Managing Director, Iberdrola QSTP LLC
Half a trillion dollars was invested in data centres in 2024, with these assets consuming approximately 1.5% of electricity generated globally. Data centre electricity consumption has grown by 12% annually since 2017. It’s now projected to more than double by 2030 to roughly 945 terawatt hours – a little more than Japan’s current electricity consumption.
This growth will be largely driven by artificial intelligence (AI). Electricity consumption by AI-optimized data centres is expected to increase more than fourfold by 2030 as digital transformation continues to revolutionize industries worldwide. Alongside cloud computing and the Internet of Things (IoT), AI is the cornerstone of this shift. It is fuelling smarter systems, better decision-making and scalable solutions.
These hyperscale data centres need power and energy-efficient cooling to make our businesses and communities more connected. But can we harness digital innovation without compromising sustainability? Striking a balance between innovation and responsible energy use will help shape a more sustainable digital future.
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How AI is driving growth in energy demand
AI consumes around 33 times more energy than specialised software, with a single ChatGPT request using up to 10 times more electricity than a Google search.
Meanwhile, the rollout of 5G networks and the rise in IoT-connected devices – from smart homes to autonomous vehicles – is expected to exceed 32 billion devices by 2030. This will significantly increase electricity use.
As digital infrastructure grows, the need for clean and renewable energy becomes increasingly critical. Without strategic measures, the surge in digital services could strain power grids and lengthen the global transition to sustainable energy sources.
Global tech trends are driving future growth in enterprise adoption and digitalization.Image: Invest Qatar – Iberdrola Report: Digital Innovation for a Sustainable Future
Digitalization: Solving the sustainability problem
While digitalization drives energy demand, it can also help to counteract its footprint and maximize efficiency in all energy-consuming sectors.
In the transport sector, for example, it could enable the collection, storage and analysis of data to enhance operations, safety, service quality and efficiency. Intelligent Transport Systems (ITS) have the potential to reduce energy use by 25% through decreased travel, a shift from less energy-efficient transport and lower per-kilometre energy consumption, according to an Invest Qatar – Iberdrola Middle East Innovation Report.
AI-driven analytics could also enable the transition towards a more sustainable energy system. They could optimize the planning and operation of generation and network assets, continuously balancing generation and demand to support the management of loads such as electric vehicles, cooling and heating systems in real-time.
Hyperscale data centres are already cutting energy waste through liquid cooling and AI-powered server optimization. In Germany, AI-driven virtual power plants predict energy demand with a 94% accuracy, enabling smarter power distribution. Singapore’s 2024 Green Data Centre Roadmap builds on its 2023 energy efficiency standards to drive sustainable data centre growth. As these technologies continue to evolve, they offer significant potential to reduce digitalization’s energy footprint.
In addition to implementing energy efficiency technologies to moderate the increase of energy demand, further investments in clean generation, storage and, most importantly, network reinforcements must be properly planned and executed to avoid delays in the deployment of data centres.
Qatar’s role in balancing digital growth
AI-driven energy solutions, smart cities and data centres can support technological progress without compromising environmental commitments. As part of Qatar’s National Vision 2030 goals, for example, digitalization and economic diversification are key to balancing economic growth with sustainability.
Qatar’s smart city projects in Lusail and Msheireb use IoT-based energy management systems to optimize power use in real-time. Msheireb Downtown Doha, a sustainable regeneration project, has reduced its energy consumption by 30%, for example.
The country is also scaling up its renewable energy initiatives. Recently, QatarEnergy announced the 2,000-megawatt (MW) Dukhan Solar Power Plant, which is expected to double the country’s solar energy production to about 4,000 MW by 2030. This builds on existing projects, including the 800 MW Al-Kharsaah solar power plant, Qatar’s first large-scale solar power station and the two solar power projects in Ras Laffan and Mesaieed with a total capacity of 875 MW.
Qatar is also collaborating with global businesses to advance its clean energy transition. Since 2018, Iberdrola Innovation Middle East’s workforce in Doha has grown more than six-fold, enabling significant advances in digital solutions for sustainable energy. In 2022, an agreement with Invest Qatar further strengthened its efforts to develop AI tools to optimize electrical networks and boost efficiency across sectors. These solutions will be available to other projects around the world, including those in Spain, the UK, the US, Brazil and Australia.
A call for responsible digital growth
Global digital transformation is inevitable and it is the responsibility of governments, businesses and tech leaders to promote responsible digitalization policies with efficiency benchmarks. The paradox of digitalization driving both energy demand and efficiency will define the future of innovation. AI will be central to this by enabling smarter systems and unlocking new opportunities for efficiency.
To ensure innovation drives sustainability, digital growth must advance energy efficiency and increase the use of renewable energy sources. The future is digital, but it must also be sustainable.
