The International Energy Agency (IEA) has initiated a new Energy and AI Observatory to evaluate the growing impact of artificial intelligence on the energy sector and the surge in electricity consumption from data centers worldwide.
This observatory introduces innovative tools to investigate electricity use in data centers and digital infrastructure across different regions. These tools aim to make critical datasets accessible to various stakeholders in the industry.
IEA's Comprehensive Report and Case Studies
The report stands as the most thorough analysis of AI's influence on the energy sector globally
This launch follows the recent release of an in-depth IEA report, "Energy and AI," published in April. The report stands as the most thorough analysis of AI's influence on the energy sector globally.
It incorporates new datasets and insights from a vast network of policymakers, technology experts, and energy industry professionals worldwide.
The report forecasts a transformative impact of AI on energy landscapes, with data center electricity demands potentially quadrupling by 2030 due to AI optimization. AI's present application in the energy industry is already paving the way for cost reductions, improved competitiveness, and emission cuts. The observatory features 20 case studies, drawn from a public call for best practices, illustrating diverse AI applications within the sector.
Insights from the AI Action Summit
The Observatory was initially unveiled by IEA Executive Director Fatih Birol at the AI Action Summit in February 2025, hosted by French President Emmanuel Macron and Indian Prime Minister Narendra Modi. This initiative seeks to influence both national and international energy and AI policy development.
Notably, the observatory is engaged in dialogues between governments and industries, facilitated by Canada's G7 Presidency.
Linking Energy and Artificial Intelligence
"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," stated Dr. Birol.
He adds, "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."
Practical Applications of AI in Energy
The observatory's case studies highlight varied AI applications by energy providers and consumers globally. For instance, schools in Stockholm, Sweden, and a university campus in Pune, India, utilize AI to enhance their heating, ventilation, and cooling systems. Meanwhile, steel and cement facilities in Czechia, Spain, and the United States are employing AI to enhance gas efficiency and leverage waste heat.
The IEA, committed to exploring the intersections between energy and AI, hosted the largest-ever Global Conference on Energy and AI in December 2024. The agency continues to lead discussions and produce new insights on AI's critical role in the energy sector.
As artificial intelligence boosts global electricity demand from data centers and increasingly transforms how the energy sector works, the IEA has launched a new Energy and AI Observatory to closely monitor and analyze the interconnections between the energy sector and this fast-evolving technology.
The Observatory includes new interactive tools to explore data center electricity consumption and digital infrastructure by region, helping visualize these valuable datasets and ensure they are accessible to a wide range of stakeholders.
Groundbreaking IEA special report
Its release follows the publication in April of a groundbreaking IEA special report, Energy and AI
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-optimized data centers 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.
AI Action Summit
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 organized by Canada’s G7 Presidency.
Significant Links between energy and AI
“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.
“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.”
Case studies
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 optimize heating, ventilation, and cooling systems, while steel and cement plants in Czechia, Spain, and the United States are utilizing 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 pioneers and produce new analysis on this critical subject.
