As we dive into the rapidly evolving world of energy consumption and technology, I’m thrilled to sit down with Dominic Jainy, a seasoned IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain offers a unique perspective on how these innovations intersect with global energy challenges. With the International Energy Agency’s World Energy Outlook 2025 report highlighting alarming trends in data center demand and energy use, Dominic is here to help us unpack the implications of AI-driven growth, the strain on global grids, and the delicate balance between fossil fuels and renewables. Our conversation explores the skyrocketing energy needs of digital infrastructure, the geopolitical tensions tied to energy security, and the hurdles in transitioning to sustainable power sources.
Can you walk us through the most striking takeaways from the World Energy Outlook 2025 report regarding global energy trends?
Absolutely, Maison. The report from the International Energy Agency paints a pretty intense picture of where we’re headed. One of the biggest takeaways is the unprecedented surge in energy demand, largely driven by the digital economy—think AI and data centers. It’s not just a small uptick; we’re talking about record consumption levels for oil, natural gas, coal, and even nuclear power. What’s striking is how this demand is outpacing our ability to supply energy, especially through renewables. The report also flags serious concerns about energy security and geopolitical tensions, showing how these issues are intertwined with our reliance on both traditional and emerging energy sources. It’s a wake-up call that we’re at a critical juncture.
What do you find to be the most concerning trend in energy consumption right now?
For me, it’s the sheer speed at which data centers are becoming energy hogs. The report notes that their electricity use is expected to triple by 2035. That’s staggering. These facilities are powering the AI revolution, but they’re also putting immense pressure on grids that aren’t ready for this kind of load. It’s not just a technical problem—it’s a systemic one. If we don’t address this, we risk widespread outages or having to lean even harder on fossil fuels, which clashes with climate goals. It’s a real tightrope.
How is AI specifically fueling this massive spike in energy demand?
AI, at its core, requires enormous computational power. Training models, running algorithms, and processing vast datasets in real time—all of this happens in data centers packed with high-performance servers that never sleep. These systems generate heat, so you’ve got cooling mechanisms running 24/7 as well. The report highlights that data centers alone will drive half of all electricity consumption growth by 2030. Every time you interact with an AI tool, whether it’s a chatbot or a recommendation engine, there’s a significant energy cost behind it. As AI adoption explodes across industries, so does the thirst for power.
With data center investments reaching $580 billion in 2025, how does this stack up against other energy sectors?
It’s a jaw-dropping figure, especially when you see it overtaking investments in traditional sectors like oil, which is sitting at $540 billion. This shift shows how the digital economy is becoming a dominant force. Historically, energy investment was all about fuel extraction and refining, but now we’re pouring money into infrastructure that supports tech—data centers being the prime example. It’s a clear signal that our priorities are changing, reflecting how much modern economies depend on digital systems over physical resources like oil.
Why do you think data centers are projected to triple their electricity use by 2035, and what does this mean for energy grids worldwide?
The tripling comes down to scale and intensity. We’re building more data centers to keep up with AI, cloud computing, and the Internet of Things, and each new facility is often larger and more power-intensive than the last. By 2035, the report suggests most growth will be in the US, China, and Europe, where tech hubs are concentrated. For energy grids, this is a nightmare scenario. Many grids are already strained, dealing with bottlenecks and congestion. This level of demand could lead to higher costs, reliability issues, and a desperate need for rapid infrastructure upgrades—something that’s not easy or quick to achieve.
Energy security is a big theme in the report. Can you explain the tensions surrounding multiple fuels and technologies today?
Sure, the report really dives into how energy security is under threat across the board. We’re seeing tensions with oil due to geopolitical instability in key producing regions, natural gas because of supply chain disruptions, and even renewables because of component shortages and slow project approvals. Add to that the tech angle—data centers and AI need constant, reliable power, and any interruption can be catastrophic for businesses. These overlapping issues create a perfect storm where no single fuel or technology feels “safe.” It’s a global challenge that’s forcing governments to rethink how they balance energy needs with stability.
How do geopolitical issues play into the rising energy demands, especially with the growth of data centers and AI?
Geopolitical tensions amplify the problem because energy isn’t just a commodity—it’s a strategic asset. As data centers and AI drive up demand, countries are competing for limited resources like natural gas or critical minerals for renewable tech. Take China, for instance, where coal demand is soaring partly to power industrial and tech growth. Meanwhile, conflicts or trade disputes can disrupt supply chains, like with LNG or oil. This creates a vicious cycle where high demand from digital infrastructure pushes nations to secure energy at any cost, often escalating tensions rather than fostering cooperation.
The report shows coal demand growing much faster than natural gas, especially in places like China. What’s driving this trend?
Coal’s resurgence, growing 50% faster than natural gas according to the report, is largely about availability and cost. In China, which is a major driver, coal is abundant and cheap compared to other options. It’s also a quick way to meet the massive energy needs of industrial sectors and tech infrastructure like data centers. Despite global pushes to phase out coal due to its high carbon footprint, the immediate need for power often trumps long-term climate goals. It’s a pragmatic, if troubling, choice for rapidly growing economies that can’t wait for renewables to catch up.
Renewables are expanding, but not fast enough. What are some of the biggest obstacles slowing down their progress?
The report points to a few key barriers, and I’ve seen these play out in tech and energy discussions. Slow permitting is a huge issue—getting approval for wind or solar projects can take years due to bureaucracy or local opposition. Then there’s the supply chain crunch for critical components like transformers, which are in short supply. Curtailment is another problem; sometimes there’s so much renewable output that grids can’t handle it, leading to wasted energy. These hurdles mean that even though investment in renewables is climbing, the actual rollout isn’t keeping pace with the demand surge from sectors like data centers.
Looking ahead, what’s your forecast for the energy landscape as data centers continue to dominate electricity consumption growth?
I think we’re heading toward a decade of intense transformation, but also significant risk. Data centers driving half of electricity growth by 2030 means we’ll see even more pressure on grids and a likely reliance on quick, dirty fixes like coal or gas if renewables don’t scale fast enough. On the flip side, this crisis could spark innovation—think advanced energy storage, smarter grid tech, or even AI itself optimizing power use. My forecast is cautiously optimistic: we’ll see breakthroughs, but only if governments and industries collaborate on a scale we haven’t seen before. Without that, we’re looking at a real struggle to keep the lights on while meeting climate targets.