The International Energy Agency's (IEA) April 2025 report 'Energy and AI' provides a comprehensive analysis of the growing interconnection between AI and the energy sector. It projects that global electricity demand from data centres will more than double by 2030, reaching approximately 945 terawatt-hours (TWh), with AI-specific data centres accounting for a significant portion of this increase. 

The report highlights AI's potential to enhance energy efficiency across various sectors. In buildings, AI can optimise heating, ventilation, and air conditioning (HVAC) systems, lighting, and other operations, leading to reduced energy consumption and costs. For instance, AI can analyse data from sensors and weather forecasts to adjust HVAC settings in real time, improving comfort and efficiency. 

However, the adoption of AI in buildings faces challenges such as fragmented ownership, lack of digital infrastructure, and insufficient incentives. The report emphasises the need for investment in digital infrastructure, regulatory support, and incentives to overcome these barriers and fully realise AI's benefits in the energy sector.  

Overall, the IEA underscores the importance of integrating AI into energy systems to improve efficiency, reduce emissions, and meet the rising electricity demands driven by AI technologies. 

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