AI Energy Demand Will Be Less Than Many Are Expecting, DNV Says

The impact of data centers and AI on energy demand may turn out to be smaller than many are predicting, according to DNV, a Norwegian risk management company.

The estimates from DNV see AI power demand reaching just 3.1% by 2030 in North America, well below the 12% forecast for the US market according to McKinsey & Company.

One of the dangers of rampant demand growth is that clean power sources won’t be expanded fast enough to keep up, triggering increased use of fossil fuels.

DNV says the energy needs of AI won’t alter the course of the energy transition.

“We believe that AI is strongly subject to Amara’s law: its impact is overestimated in the short term and underestimated in the long run.” DNV wrote in the report.