The International Energy Agency (IEA) issued a stern warning, saying that cryptocurrencies and artificial intelligence (AI) currently account for nearly 2% of global electricity consumption. However, this figure is likely to double in the next few years.
The explanation is that the fast-growing cryptocurrency industry is contributing to a surge in energy consumption by increasing the number of data centers around the world.
Electricity consumption expected to double with cryptocurrency and AI
In a comprehensive 170-page report, the IEA details the various factors affecting the potential increase in power consumption from cryptocurrencies and AI over the next few years. The agency is confident the increase could be at least double.
“Power consumption in data centres, artificial intelligence (AI) and cryptocurrency sectors could double by 2026.”
But it’s surprising when the numbers go down. The IEA says global energy consumption in these three sectors is expected to reach 620 to 1,050 TWh in 2026.
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If this prediction comes true, it would mean adding “at least one Sweden or most of Germany.”
“We estimate that data centers, cryptocurrencies and artificial intelligence (AI) will consume approximately 460 TWh of electricity globally in 2022, equivalent to nearly 2% of total global electricity demand.”
Recent controversies surrounding cryptocurrency mining
The debate over cryptocurrency mining has been going on for some time.
Read more: How to Mine Cryptocurrency: A Step-by-Step Guide
In September 2023, BeInCrypto reported that the number of electricity thefts in the UK will increase in 2022. Cryptocurrency mining was listed as the three most likely reasons why this could happen.
However, in 2021, West Midlands Police exposed an illegal Bitcoin (BTC) mining operation. It included more than 100 connected devices to bypass the electricity supply.
Meanwhile, US presidential candidate Robert F. Kennedy Jr. disputed the idea that Bitcoin mining has a significant impact on energy consumption. Moreover, he said environmental arguments should not be used as a “smokescreen to curtail freedom of trade.”
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