The International Energy Agency (IEA) has delivered a dire warning, revealing that cryptocurrencies and artificial intelligence (AI) currently account for nearly 2% of the world’s total electricity consumption. However, this figure is poised to double within the next couple of years potentially.
It explains that the expanding crypto industry is responsible for an increase in data centers worldwide, thereby contributing to the surge in energy consumption.
Crypto and AI Expected to Double Electricity Consumption
In a comprehensive 170-page report, the IEA details various factors influencing the potential rise in electricity consumption from crypto and AI in the coming years. The agency expresses confidence that the increase could be at least double:
“Electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026.”
However, when the numbers are crunched, it is alarming. The IEA states that it expects global energy consumption from these three sectors to range between 620 and 1050 TWh in 2026.
Read more: 11 Best Altcoin Exchanges for Crypto Trading in January 2024
Should this forecast materialize, it would mean adding “at least one Sweden or most of Germany.”
“We estimate that data centres, cryptocurrencies, and artificial intelligence (AI) consumed about 460 TWh of electricity worldwide in 2022, almost 2% of total global electricity demand.”
Recent Controversy Surrounding Crypto Mining
The debate over cryptocurrency mining has been going on for some time now.
In September 2023, BeInCrypto reported on the rising amount of electricity theft in the United Kingdom in 2022. Crypto mining was listed as the three most probable reasons for why this may be happening.
Read more: How To Mine Cryptocurrency: A Step-by-Step Guide
However, in 2021, the West Midlands Police exposed an illicit Bitcoin mining operation. This involved over 100 connected devices to circumvent the electricity supply.
Meanwhile, US presidential candidate Robert F. Kennedy Jr. challenged the idea that Bitcoin mining has significant consequences on energy consumption. Furthermore, he stated that environmental arguments should not be used as a,
“Smokescreen to curtail freedom to transact.”
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