The International Energy Agency (IEA) has issued a warning stating that the combined electricity consumption of cryptocurrencies and artificial intelligence (AI) accounts for nearly 2% of the world’s total electricity usage. The IEA’s comprehensive report predicts that this consumption could double by 2026, reaching between 620 and 1050 TWh. The expansion of the crypto industry has led to the proliferation of data centers, contributing to the surge in energy consumption. The potential increase is equivalent to adding “at least one Sweden or most of Germany.” The IEA estimates that data centers, cryptocurrencies, and AI consumed about 460 TWh of electricity worldwide in 2022, representing almost 2% of the total global electricity demand.
The IEA’s warning emphasizes the need for sustainable practices in the cryptocurrency and AI sectors to address environmental concerns. As these industries continue to grow, there is an urgent need for innovation and adoption of energy-efficient technologies to mitigate the impact on global electricity consumption. Regulatory bodies and industry players should collaborate to promote responsible energy usage and explore eco-friendly alternatives. (Source: Beincrypto)
