IEA Report Examines AI’s Growing Impact on Energy Sector

Muscat: The International Energy Agency (IEA) has released a new report analyzing the intersection of artificial intelligence (AI) and energy consumption. As AI adoption expands, concerns grow over its electricity demands, particularly for data centers, while also recognizing its potential to revolutionize the energy industry. According to Oman News Agency, the report, based on global and regional modeling, provides projections on AI's electricity consumption over the next decade and examines which energy sources will support this growth. It also explores the implications for energy security, emissions, innovation, and affordability. Given the lack of comprehensive data, policymakers and industry leaders have struggled to assess AI's full impact. This study seeks to bridge that gap through consultations with governments, regulators, the tech industry, and energy experts. The IEA emphasizes that while AI-driven insights can inform discussions, the findings should be independently verified. The report also o utlines licensing terms and cautions against using AI models for personal data analysis or decision-making.