Study: Use of Gen AI will double global data centers' electricity consumption by 2030

Business Forum
As power-intensive Generative AI (Gen AI) consumption grows faster than other uses and applications, electricity consumption by data centers is forecasted to double to 4% of global electricity consumption by 2030, according to the latest edition of the Deloitte Technology, Media and Telecommunications (TMT) Predictions report. The power needed to support data centers' most important components, among which storage systems, cooling and networking switches, is expected to reach 96 gigawatts globally by 2026, with AI operations alone expected to consume over 40% of that power.

“Sustainability is as important as transparency for building trust, for ensuring robust governance, for transforming talent and for managing mature data life cycle, which are all instrumental in defining the Gen AI roadmap. The report points out that, on average, a Gen AI prompt request uses 10 to 100 times more electricity than a standard internet search query. Given the use of this amount of power, hyperscalers and data center operators must consider alternative energy sources, innovative cooling methods, and more energy-efficient solutions when designing data centers,” said Andrei Ionescu, Consulting Market Leader, Deloitte Romania.

The report predicts that 2025 will be a year of growth for agentic AI - software solutions designed to complete tasks and meet objectives with little or no human supervision - as 25% of the companies using Gen AI will launch agentic AI pilots or proofs of concepts in 2025, growing to 50% by 2027. Built on large language models, these AI agents will offer greater flexibility, and a wider array of use cases compared to traditional machine learning or deep learning methods.

As Gen AI solutions grow in versatility, deepfake – videos, photos and audio materials that seem real but are generated by artificial intelligence tools – emerges as a concern requiring organizations to enhance overall security and trust in digital content. To detect fake content and create standards for content authentication, organizations should prioritize tools and vendors that leverage varied and premium data collections and collaboration with peers across industries. At the same time, the report highlights that the end users should be encouraged to cross-check information with reliable sources and utilize multi-factor authentication to help mitigate risks associated with deepfake.

As on-device Gen AI is on the rise, Deloitte TMT Predictions report forecasts that GenAI-enabled smartphones will exceed 30% of total shipments and PCs with local GenAI processing capabilities will be around 50% of the total shipments, rising from an estimated 30% in 2024.

On the streaming front, the report shows that streaming video on demand (SVOD) has reached its limit after peaking at around four subscriptions per consumer in the US and an average of 2.5 in most European markets in 2024 and will start declining in 2025. While standalone subscriptions are expected to decline, SVOD revenues may still rise as providers implement price hikes, tighten password-sharing policies, and enhance bundling options.

The report also forecasts that the market will stabilize with just two or three stand-alone direct to consumer SVOD players per market, complemented by aggregators. Echoing the traditional model of pay TV providers, the report emphasizes a resurgence of aggregation, where intermediaries, such as telcos, pay TV platforms, and tech platforms, will consolidate multiple content sources into single offerings. The report underlines that the model is already visible in the United States, the United Kingdom and France, but also in Central Europe where it's been estimated that 25% of all SVOD subscriptions are indirect, sourced via pay TV or telco. This shift may reduce costs and create a more sustainable streaming ecosystem.

This year's edition of the Deloitte TMT Predictions report provides an outlook on technology, media and telecommunications trends that may disrupt and transform the business and consumer ecosystems worldwide.

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Business Forum  |  6 March, 2025 at 12:10 PM
Business Forum  |  6 March, 2025 at 12:06 PM