By the close of 2025, artificial intelligence (AI) is expected to consume more electricity than Bitcoin mining, marking a significant shift in the digital economy’s energy landscape. This projection stems from recent analyses highlighting the rapid expansion of AI technologies and their substantial energy requirements.
Research conducted by Alex de Vries-Gao of Vrije Universiteit Amsterdam indicates that AI’s energy demand could reach approximately 23 gigawatts (GW) by the end of 2025. In contrast, Bitcoin mining currently consumes around 10 GW. This surge is attributed to the proliferation of large, resource-intensive AI models and the increasing deployment of AI applications across various sectors.
The energy consumption of AI is not only significant in comparison to Bitcoin mining but also when viewed against national electricity usage. De Vries-Gao’s study suggests that AI’s power consumption could rival that of mid-sized European countries, such as the Netherlands, by the end of this year.
This escalating demand has prompted major technology companies to seek sustainable energy solutions. For instance, Meta has entered a 20-year agreement with Constellation Energy to support the revival of a nuclear power plant in Illinois, aiming to meet the growing energy needs of its AI operations.
The International Energy Agency (IEA) projects that electricity demand from data centers worldwide is set to more than double by 2030, with AI being a significant driver of this increase. In the United States, data centers are expected to account for nearly half of the growth in electricity demand between now and 2030.
Despite advancements in energy efficiency, the rapid expansion of AI technologies continues to pose challenges for energy infrastructure and sustainability efforts. The IEA emphasizes the need for diverse energy sources, including renewables and natural gas, to meet the rising electricity needs of data centers.
