Data centers consume as much electrical energy as the top energy-consuming countries. Our analysis, based on data from the IEA’s Electricity 2024 Report and global electricity statistics, reveals a striking comparison: if we consider the data centers as a country, it would rank among the largest electricity consumers in the world. The figure below highlights the significant energy footprint of modern data infrastructures, including traditional data centers, AI data centers, and cryptocurrency operations. While Bloomberg ranks data centers as the 17th largest electricity consumer, our analysis using IEA's projection range as shown in the plot, places them 7th for the medium forecast. Regardless of the exact ranking, data centers' electricity consumption is growing rapidly.
As AI and the digital economy advance, data centers' electricity demand is projected to surge. The IEA forecasts that by 2026, data centers could consume 620-1,050 TWh of electricity, comparable to the largest nations. The graphic above compares this projection with current energy consumption data from the top 70 countries, highlighting the need for energy efficiency in digital infrastructure.
At Skycore Semiconductors, we address this challenge with advanced microchip technology for power electronics. Our microchips significantly reduce power loss in power converters, essential to data centers' energy management. By optimizing the efficiency of these converters, Skycore's technology not only supports the high power requirements of modern data centers but also reduces the bill of materials.
Data center power densities now reach upwards of 100 kW per rack, compared to 10-20 kW in traditional setups. Our technology manages these higher loads and accommodates the industry's shift to higher distribution voltages, from 12V to 48V and beyond. Reducing power loss also helps mitigate overheating in high-power racks.
With the rapid expansion of data centers, integrating efficient power conversion solutions like those developed by Skycore is essential. Our technology ensures data centers can scale with reduced power conversion losses, thereby enhancing overall efficiency and reducing environmental impact.
As we approach 2026 and beyond, energy efficiency will remain a top priority in digital infrastructure. While the green transition brings more sustainable energy generation online, it struggles to keep pace with the rapid increase in data center energy consumption, which can challenge our power grids. Skycore Semiconductors is committed to leading the way in sustainable and efficient power usage for data centers, helping to balance this demand.
Stay tuned to our updates as we continue to develop solutions to address one of the most critical challenges in the digital world today.
Note1: The electricity data for countries is sourced from the U.S. Energy Information Administration (2023) and the Energy Institute - Statistical Review of World Energy (2024) via Our World In Data on GitHub. Data center consumption includes traditional data centers, dedicated AI data centers, and cryptocurrency consumption as specified by the International Energy Agency (IEA). Data center data for 2000-2019 is estimated, while 2019-2026 data and forecasts are from the IEA. For the countries listed in Note 2, data was available only up to 2022, so a linear prediction has been made for 2023. The electricity demand has also been linearly forecasted to 2026 for comparison purposes.
Note2: Azerbaijan, Bahrain, Belarus, Dominican Republic, Ghana, Hong Kong, Indonesia, Iraq, Israel, Jordan, Libya, Malaysia, North Korea, Saudi Arabia, Ukraine, United Arab Emirates, Uzbekistan
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