In June 2025, the International Energy Agency (IEA) launched its first-of-its-kind Energy and AI Observatory to track and analyse the growing connections between artificial intelligence and the energy sector. The web-based platform offers interactive tools to visualise data centre electricity consumption and digital infrastructure by region, alongside 20 case studies illustrating AI applications in energy management, grid optimisation, and emissions reduction.
The observatory builds on the IEA’s April 2025 special report, Energy and AI, which combined new datasets with extensive consultations involving policymakers, the technology industry, and energy experts. That report projected that electricity demand from AI-optimised data centres could more than quadruple by 2030, while highlighting how AI-driven solutions in generation, transmission, and distribution can lower operating costs, boost competitiveness, and cut greenhouse gas emissions.
“The IEA is at the forefront of efforts to understand and manage the significant links between energy and artificial intelligence, which is quickly emerging as one of the most important technologies of our time,” Dr Birol said today. “Building on our recent major report on this subject, this new Energy and AI Observatory – developed in consultation with a wide range of partners – underscores our commitment to supporting decision makers around the world as they plan for the future. Reliable data and analysis are the cornerstone of navigating this fast-moving space.”
Featured case studies include AI-driven heating, ventilation, and cooling optimisations at schools in Stockholm and a major campus in Pune, which have reduced energy use. In the industrial sector, steel and cement plants in Czechia, Spain, and the United States are deploying machine learning to improve gas consumption efficiency and increase waste-heat recovery.
This launch complements the IEA’s December 2024 Global Conference on Energy and AI, the largest event to date on this topic. As the agency continues to convene leaders and publish new analysis, the Energy and AI Observatory is positioned to guide policymakers, industry stakeholders, and researchers in harnessing AI for a more resilient, cost-effective, and low-carbon energy system.
Source: International Energy Agency
