Energy

The Hidden Cost of Our Digital Future: Energy, AI, and the Global Energy Crisis

AI’s energy demand is skyrocketing—driving up costs and straining grids. Discover how efficiency can be the key to a sustainable future.

February 11, 2025

Daniel Lavinskas

Founder & CEO

The Energy Crisis: Rising Demand, Rising Costs

Over the past decade, our world has witnessed dramatic shifts in energy production and consumption. According to the International Energy Agency (IEA), global energy consumption increased by 12.82% from 2012 to 2022, while total energy production rose by 14.39%¹. These figures illustrate that even as we expand our energy supply, our consumption is accelerating—and not always in sustainable ways.

In practical terms, these trends are hitting consumers hard. In the United States, the average price of electricity has surged by 94.88%. Meanwhile, in Canada, electricity prices have escalated by an astonishing 155.39%². These steep increases underscore a critical reality: as energy systems strain under rising demand, the cost of powering our homes and businesses will continue to climb.

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AI’s Energy Appetite: How Data Centers Are Reshaping the Grid

The rapid adoption of digital technologies is intensifying our energy needs even further. The IEA notes that data center workloads are growing 20-40% annually.

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Despite strong gains in efficiency, the rapid growth in workloads handled by large data centres has resulted in a substantial increase in energy use in this segment over the past several years, growing by 20-40% annually³.

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This is not just an abstract statistic—data centres, especially those powering artificial intelligence, are becoming major energy consumers.

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Figure 1 - Household adoption rates of digital technologies in the United States4

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Recent studies suggest that AI data centres can consume up to ten times more energy than traditional data centres. With AI adoption accelerating faster than many other technologies, these energy-hungry facilities are projected to account for as much as 12% of U.S. energy consumption by 2030⁵. This relentless growth is poised to drive energy prices even higher, affecting everything from commercial buildings to household bills.

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Figure 2 - Power demand for data centers from 2023 to 2030 and it’s share of total US power demand (%)5

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Amid these challenges, innovative breakthroughs like Deepseek R1 offer a ray of optimism. Unlike many leading AI models, R1 claims to operate at just a tenth of the energy consumption, a technological achievement with the potential to ease pressure on our power grids and reduce overall emissions. In fact, following the R1 announcement, energy companies saw a 20% drop in their share prices—a market signal that efficiency improvements can significantly impact our energy future ⁶. If this trend continues, the efficiency gains from models like R1 could help mitigate some of the strain on our energy systems, steering us toward more sustainable emissions projections.

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The Solution: Smarter Energy Management for a Sustainable Future

As energy demands grow, the ripple effects are felt most acutely by everyday consumers. Rising energy prices mean that household bills will keep climbing. In advanced economies, the poorest households already spend nearly one quarter of their disposable income on energy, while many in emerging markets either lack access to modern energy services or must make do without essential appliances.

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The poorest households in advanced economies spend nearly one quarter of their disposable income on energy; in emerging market and developing economies, many poor households lack access to modern energy or do not own appliances or vehicles⁷.

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These disparities highlight the urgent need for solutions that not only improve energy efficiency but also protect the most vulnerable among us.

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How Citera is Making Energy Efficiency Accessible for All

At Citera, we recognize that while the digital revolution pushes us forward, it also presents significant challenges for our energy infrastructure. Our goal is to empower building owners, facility managers, and everyday consumers with the tools and insights needed to make smarter energy choices—today.

We are developing technology that makes energy management accessible to everyone. Whether you’re managing a modern building equipped with state-of-the-art systems or an older facility in need of optimization, Citera’s solutions are designed to reduce energy waste, lower operating costs, and contribute to a more sustainable future.

The data is clear: rising energy demands, driven in part by our digital and AI-driven transformation, are reshaping our energy landscape. Yet, there is hope. By embracing energy efficiency and smarter building management practices, we can counterbalance these trends and create lasting, positive change.

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Learn More About Citera

We invite you to learn more about how Citera is leading the way in democratizing energy management. Explore our solutions, request a demo, or subscribe to our newsletter for actionable insights that can help you reduce energy costs and protect our planet. Together, we can turn the tide on our global energy crisis—one building at a time.

Discover how Citera can empower you to make better energy choices every day.

The Hidden Cost of Our Digital Future: Energy, AI, and the Global Energy Crisis

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Continue reading

Canada’s Hidden Dependence on U.S. Energy Policies—Time to Break Free?

Confused by NYC’s Local Laws 84 and 97? We’ve Got You Covered!

The US Steps Back, but Carbon Neutrality Goals Push Forward