AI data centres outstrip power grid growth, UN warns of strain on global energy systems
The breakneck expansion of artificial intelligence (AI) data centres is running ahead of the development of electricity grids, the United Nations Economic Commission for Europe (UNECE) has cautioned, flagging serious risks to the stability and resilience of power systems around the world.
According to the International Energy Agency (IEA), electricity use by data centres is set to nearly double by 2030, climbing from 485 terawatt-hours (TWh) in 2025 to 950 TWh in 2030. That would account for roughly three per cent of total global electricity demand.
By contrast, investment in data centre infrastructure is projected to grow much more slowly, only about doubling between 2026 and 2050, from around $800 billion a year to $1.8 trillion annually.
UNECE, based in Geneva, said that in several regions, data centres and other power-hungry facilities are being built far faster than the transmission networks needed to supply them.
While a large data centre can typically be planned, built and connected to the grid within two to five years, upgrading or extending high-voltage lines and other critical grid assets often takes more than a decade because of protracted planning, permitting and construction procedures.
The commission warned that mounting stress on power systems could trigger voltage fluctuations, unplanned outages and even cascading failures across networks.
In some cases, such issues are already emerging in grids with high shares of renewable energy. Demand from AI data centres can be highly volatile, with sudden spikes that renewable-dependent systems may not be able to match in real time, UNECE noted.
The widening gap between surging demand and lagging infrastructure has already pushed several countries to adopt energy-efficiency rules and location-based curbs to avoid overloading national grids.
Ireland, home to one of the densest clusters of data centres globally, has imposed restrictions on new grid connections in Dublin. The Netherlands has similarly tightened rules on where such facilities can be sited.
A key unresolved issue is who should pay for the grid upgrades needed to accommodate ever-larger data centres.
Linking major facilities to transmission networks can demand substantial investment, yet there is no uniform framework to allocate these costs among data centre operators, utilities and end consumers. UNECE cautioned that without clear cost-sharing rules, essential grid investments could be delayed.
Regulatory gaps also persist over the siting of data centres. Power-intensive operations continue to concentrate in regions offering favourable connectivity and policy conditions, piling demand onto local grids that may lack the capacity to support them.
Environmental rules are beginning to broaden beyond electricity use to cover water consumption, emissions and pressure on local resources. However, UNECE said these regulations remain fragmented and inconsistent.
Regulators also lack adequate real-time data on how large data centres draw power, hampering efforts to forecast their impact on grids and respond swiftly to sudden demand shifts.
Overall, the UN body is urging tighter regulation and better cross-border coordination to manage the rapid growth of data centres and safeguard the long-term reliability of energy systems that are increasingly vital to modern economies and societies.