AI’s demand for computing power could surpass India’s energy consumption by 2030

  • AI’s demand for computing power is set to surpass India’s energy consumption by 2030.
  • Rene Haas, CEO of Arm Holdings Plc, highlights the urgency of addressing this energy surge for AI to fulfill its potential.
  • The industry is witnessing a shift towards energy-efficient Arm chip designs, driven by companies like Amazon, Microsoft, and Alphabet.
  • Custom-built chips promise to alleviate bottlenecks and reduce data center power consumption by over 15%.

Main AI News:

The demand for computing power driven by artificial intelligence (AI) is poised to surpass India’s energy consumption, warns Rene Haas, CEO of Arm Holdings Plc. By 2030, data centers worldwide are projected to eclipse India’s electricity usage, signaling an urgent need for the industry to rethink its energy approach.

In an interview, Haas emphasized the imperative of addressing this anticipated threefold surge in energy consumption to realize AI’s potential fully. He highlighted the early stage of AI capabilities and stressed the necessity for increased training, which involves substantial data bombardment and consequently strains energy resources.

This concern echoes a growing chorus of voices expressing apprehension about AI’s impact on global infrastructure. However, Haas also advocates for a shift towards Arm chip designs, which are renowned for their energy efficiency. Arm’s technology, prevalent in smartphones, is increasingly adopted in data centers, promising more sustainable energy usage compared to traditional server chips.

Since its debut on Nasdaq last year, Arm has positioned AI and data center computing as key growth drivers. Major players like Inc.’s AWS, Microsoft Corp., and Alphabet Inc. are embracing Arm’s technology for their in-house chips, reducing reliance on Intel Corp. and Advanced Micro Devices Inc.

Haas emphasizes the potential for custom-built chips to alleviate bottlenecks and conserve energy, projecting a potential reduction in data center power consumption by over 15%. He stresses the necessity for widespread efficiency improvements, underscoring the significance of every advancement in the pursuit of sustainable AI computing.


The escalating energy consumption driven by AI poses significant challenges for global infrastructure. However, opportunities abound for companies like Arm Holdings, positioned to capitalize on the growing demand for energy-efficient computing solutions. As major players in the tech industry increasingly adopt Arm’s technology, there is potential for substantial market growth and a shift away from traditional server chip providers like Intel and AMD.