AI Could Consume More Power Than Bitcoin By the End of 2025

Artificial intelligence could soon outpace Bitcoin mining in energy consumption, according to Alex de Vries-Gao, a PhD candidate at Vrije Universiteit Amsterdam's Institute for Environmental Studies. His research estimates that by the end of 2025, AI could account for nearly half of all electricity used by data centers worldwide -- raising significant concerns about its impact on global climate goals.

'While companies like Google and Microsoft disclose total emissions, few provide transparency on how much of that is driven specifically by AI,' notes DIGIT. To fill this gap, de Vries-Gao employed a triangulation method combining chip production data, corporate disclosures, and industry analyst estimates to map AI's growing energy footprint.

His analysis suggests that specialized AI hardware could consume between 46 and 82 terawatt-hours (TWh) in 2025 -- comparable to the annual energy usage of countries like Switzerland. Drawing on supply chain data, the study estimates that millions of AI accelerators from NVIDIA and AMD were produced between 2023 and 2024, with a potential combined power demand exceeding 12 gigawatts (GW). A detailed explanation of his methodology is available in his commentary published in Joule.

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