The explosive development of crypto and artificial intelligence (AI) could have a dramatic impact on global energy consumption by 2026, according to a recent report from the International Energy Agency (IEA).
AI and crypto, an insatiable energy bulimia
Powered by the public’s enthusiasm for models like ChatGPT, conversational artificial intelligence services are poised for exponential growth in the coming years. However, they rely on complex algorithmic models that are extremely energy-intensive.
Thus, the report of the International Energy Agency (IEA) estimates that ChatGPT alone could consume the equivalent of the annual electricity production of 700,000 American homes by 2026, or nearly 10 TWh. For comparison, a simple Google search consumes 10 times less!
For its part, the crypto industry displays an equally devouring hunger. Bitcoin mining, which is based on solving complex mathematical problems, alone represents electricity consumption of 120 TWh in 2023, expected to increase to reach 160 TWh in 2026 according to the IEA.
In total, the energy addition for these two sectors could double and exceed 1000 TWh by 2026, the equivalent of the consumption of 70 million American homes. Figures that make you dizzy.
Insufficient efforts for an energy transition
Faced with climate concerns, efforts are being made to green these sectors. In 2021, after China’s ban on crypto mining for environmental reasons, American mines have adopted renewable energy sources. Today, over 50% of Bitcoin mining uses green electricity.
However, despite these laudable advances, the industry still faces immense challenges for its energy transition, underlines the International Energy Agency (IEA). Even if some cryptos become more efficient, compensation through increased transactions maintains overconsumption.
Faced with this alarming observation, innovative solutions are emerging to encourage the use of renewables. The United Arab Emirates, for example, took the lead at COP28 by announcing a blockchain-powered carbon credit trading platform. By facilitating the traceability of GHG emissions, it could accelerate the decarbonization of the sector.
But beyond technological innovations, awareness among stakeholders remains essential. Consumers and investors must realize that this promising sector cannot develop to the detriment of the environment. The future of our planet is at stake.
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