Latest news with #LauraCozzi
Observer
10-04-2025
- Business
- Observer
IEA warns global trade war could hinder AI sector growth
PARIS: An escalating global tariff war could provide challenges for the emerging data centre sector and cause slower growth, Laura Cozzi, the International Energy Agency (IEA) Director of Technology, told Reuters. The US, China, and the European Union together are set to account by 2030 for 80% of the forecast growth in data centre demand, which is expected to be dominated by Artificial Intelligence (AI) use, the IEA said in a report on Thursday. The report's headwind scenario "encompasses many of the things we are seeing - slower economic growth, more tariffs in more countries, so indeed yes (the current tariff environment) is a scenario in which AI would see slower growth than what we see in our base case," Cozzi said. Global electricity consumption from data centres is expected to rise to around 945 terawatt hours (TWh) by 2030 in the IEA's base case scenario, but the "headwind scenario" would see that drop to 670 TWh, IEA data showed. In the United States, data centres are expected to account for nearly half of electricity demand growth between now and 2030, and the country is expected to lead in data centre development globally, according to IEA data. US electricity utilities have been fielding massive requests for new capacity that would exceed their peak demand or existing generation capacity, raising concerns that tech companies are approaching multiple power utility providers, inflating the demand outlook. The report aims to work with tech companies and industry to make sense of the real queue for data centres, which is ultimately going to be essential for AI to get the electricity it needs, Cozzi said. Strain on grids could also lead to project delays, with about 20% of planned data centre projects at risk. Demand for transmission lines and critical grid and generation equipment are in high demand, reflecting this risk, the IEA report said. Some 50% of data centres under development in the US are in pre-existing large clusters, potentially raising risks of local bottlenecks, it said.— Reuters
Reuters
10-04-2025
- Business
- Reuters
Global trade war may produce headwinds for nascent AI sector, IEA says
PARIS, April 10 (Reuters) - An escalating global tariff war could provide challenges for the emerging data centre sector and cause slower growth, Laura Cozzi, the International Energy Agency (IEA) Director of Technology told Reuters. The U.S., China and the European Union together are set to account by 2030 for 80% of the forecast growth in data centre demand growth, which is expected to be dominated by Artificial Intelligence (AI) use, the IEA said in a report on Thursday. The report's headwind scenario "encompasses many of the things we are seeing - slower economic growth, more tariffs in more countries, so indeed yes (the current tariff environment) is a scenario in which AI would see a slower growth than what we see in our base case," Cozzi said. Global electricity consumption from data centres is expected to rise to around 945 terawatt hours (TWh) by 2030 in the IEA's base case scenario, but the "headwind scenario" would see that drop to 670 TWh, IEA data showed. In the United States, data centres are expected to account for nearly half of electricity demand growth between now and 2030, and the country is expected to lead in data centre development globally, according to IEA data. U.S. electricity utilities have been fielding massive requests for new capacity that would exceed their peak demand or existing generation capacity, raising concerns that tech companies are approaching multiple power utility providers, inflating the demand outlook. The report aims to work with tech companies and industry to make sense of the real queue for data centres, which is ultimately going to be essential for AI to get the electricity it needs, Cozzi said. Strain on grids could also lead to project delays, with about 20% of planned data centre projects at risk. Demand for transmission lines and critical grid and generation equipment are in high demand, reflecting this risk, the IEA report said. Some 50% of data centres under development in the United States are in pre-existing large clusters, potentially raising risks of local bottlenecks, it said.
Euronews
24-03-2025
- Business
- Euronews
Air conditioner use driving up emissions as global heating bites
ADVERTISEMENT The rate of increase in global energy demand shot up last year, driving increased greenhouse gas emissions even with renewable energy and nuclear power supplying bulk of new electricity generation capacity. The International Energy Agency reported on Monday a 2.2% increase in global energy demand last year, almost double the average of 1.3% a year recorded in the decade to 2023. But electricity use saw a whopping 4.3% surge, driven by increased demand from data centres, electric cars – and notably, air conditioners. Extreme weather conditions, especially heat waves in China, India and the United States were behind a fifth of the increased demand for natural gas and electricity last year, and all of a 123 million-tonne (1.4%) increase in the volume of coal burned, chiefly in power stations, the Paris-based intergovernmental agency reported. 'The heat waves around the world, in turn, pushed the electricity demand growth, which in turn gives a push – in some countries like China and India – to coal consumption growth,' IEA president Fatih Birol told reporters while presenting the 2025 edition of the Global Energy Review. The clear trend prompted the IEA to abandon late last year its forecast that coal burning was set to peak in the near future, with global demand hitting 8.7 billion tonnes in 2024. Related 'Unstoppable' shift to clean energy will see demand for fossil fuels peak before 2030, IEA says All this means that, despite renewables like solar and wind covering 38% of the additional global energy demand – and nuclear contributing 8% while hitting a global generation record – over half of the increase was met by a combination of coal, oil and gas, reflected by a 0.8% increase in energy-related carbon emissions. While this is only about two-thirds of the rate of increase seen the previous year, the trend remains very much an upward one, calling into question once more the global appetite for climate action and the net-zero emissions goal that the scientific consensus suggests is the bare minimum needed to arrest rising temperatures. 'If we want to find the silver lining, we see that there is a continuous decoupling of economic growth from emissions growth,' said Laura Cozzi, who leads the IEA's work on energy sustainability and was lead author of the report. The global economy grew by 3.2% last year, considerably more than overall energy use, returning to a long-term average after some COVID-era turbulence. In addition, the world appears to be on track to meet the pledge made at the COP28 climate summit in Dubai in 2023 to treble the rate of renewables deployment by the end of the decade, Cozzi said. 'For renewables, we are very, very close – we are at around a 2.7 [times] increase by 2030.' But as the latest IEA report shows, the same is not true of the pledge to double the rate of annual energy efficiency improvements – a proxy for demand reduction – also agreed at the global climate summit that the UN hailed as the 'beginning of the end' of the fossil fuel era. 'If you look at the trends for…last year, instead of a doubling, we have actually seen a halving,' Cozzi said.
