The energy consumed by artificial intelligence would be enough for a large country to last a whole year.

In the future, the rapidly developing field of AI will help reduce carbon emissions

The rapid growth of the power generation AI sector will see it consume the same amount of electricity per year by 2027 as was used by all of Spain in 2022, new modeling from Morgan Stanley shows.

The rapid development of the artificial intelligence (AI) industry will lead to an annual growth of energy consumption of 70 percent, from less than 15 terawatt-hours (TWh) in 2023 to 224 TWh by 2027 – a sum close to the 230 TWh used by all of Spain during 2022.

However, a report from Morgan Stanley argues that the AI ​​sector will have a positive impact on the global climate, as the industry’s widespread use of clean energy will result in more carbon emissions being reduced.

The potential of artificial intelligence to help the world improve the efficiency of power grids and develop new emissions-reducing technologies, including carbon recycling and sequestration (CCU) machines, will outweigh the surge in emissions caused by the energy consumption of the artificial intelligence industry, the company says.

Energy experts have previously raised concerns about plans to rely on carbon capture and storage (CCS) and CCU technologies to combat global warming because they are unproven.

The AI ​​sector’s growing demand for electricity will require a massive build-out of new clean energy generation capacity, a Morgan Stanley report says, as it argues that renewable energy companies and data center infrastructure companies will be boosted by AI growth .

Morgan Stanley’s paper is based on concerns from experts and investors that the rise of the artificial intelligence sector will lead to a surge in fossil fuel use, leading to more carbon dioxide emissions that contribute to global warming.

Experts have previously warned that the growing demand for electricity in the artificial intelligence industry will lead to increased use of fossil fuels, even if the sector is powered directly by clean energy sources, other areas will be forced to use hydrocarbons instead.

The situation may be exacerbated by growing demand for clean energy from competing sectors, including the green industry and to power an ever-growing fleet of electric vehicles.

Recall that in March 2023, the CEO of the Finnish and Norwegian state arms company Nammo, Morten Brandzeg, said that the company’s capabilities are limited due to a lack of electricity, since the data center for social networks uses all reserve power.

“We are concerned because we see that storing cat videos jeopardizes our future growth,” Brandzeg explained in an interview with the Financial Times.

Earlier in Davos in early 2024, OpenAI CEO Sam Altman told Reuters that the artificial intelligence sector will consume far more energy than people currently expect, and that breakthroughs in nuclear fusion technology will be needed to meet demand.