Growing Energy Demands in the AI and Cryptocurrency Era

Recently, Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), expressed concerns about the escalating energy consumption and carbon emissions stemming from cryptocurrency mining and data centers. These industries, although driving innovation, are also straining global energy systems.

In a conservative estimate, their combined energy usage could rise to 2.2% of global consumption. In a worst-case scenario, it could surge to nearly 6%. A prime example: training GPT-3 consumed around 1,287 MWh of electricity—equivalent to what 3,000 Tesla EVs would use to drive over 320,000 km.

The Carbon Cost of Progress

Data from 2022 shows that global data centers consumed nearly 460 billion kWh of electricity, a figure expected to double to 1 trillion kWh by 2026. Although cryptocurrency mining’s emissions may fall by 2027, data center-related carbon dioxide emissions could reach 450 million tons, or 1.2% of the global total.

Cryptocurrency Mining and the Environment

Gopinath's remarks highlight increasing concerns about Bitcoin mining. According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin-related emissions have already surpassed those of entire countries like Greece. Nonetheless, nations such as the U.S. and Russia continue to embrace cryptocurrency mining for its economic potential.

Renewable Energy and the Smart Grid Revolution

To meet surging electricity demand, global power generation capacity is expanding rapidly. With carbon neutrality in mind, 86% of new capacity now comes from renewable energy sources. However, renewables are inherently variable—solar power fluctuates with weather, and wind energy is unpredictable.

This inconsistency has propelled the development of smart grids, which balance electricity production and consumption more intelligently.

Energy Storage Systems: The Backbone of Smart Grids

Smart grids alone are not enough—they rely heavily on energy storage systems (ESS) to maintain stability and maximize renewable energy efficiency. ESS solutions store excess electricity from solar and wind when generation is high and release it when demand surges or generation dips.

For example, solar power collected during sunny hours can be stored and used at night or on cloudy days. ESS also cushions the impact of wind lulls, ensuring a continuous power supply.

Empowering AI’s Growth with ESS

As artificial intelligence demands unprecedented levels of computing power, the electrical load continues to grow. ESS helps alleviate peak electricity demands during high-computing periods—like large AI model training—thus preventing grid overload and enhancing power utilization.

Pairing ESS with renewable energy also reduces reliance on fossil fuels, providing cleaner energy for AI infrastructure.

The Future: Renewable Energy + ESS

The “renewable energy + ESS” model is becoming the standard for a sustainable AI-powered future. Advances in lithium-ion and sodium-ion batteries are making storage more efficient and affordable. At the residential level, integrating distributed photovoltaic (PV) systems with home ESS enables users to generate and manage their own power, reducing both costs and emissions.

Dagong ESS: Powering the AI Era Sustainably

One of the leading players in the energy storage revolution is Dagong ESS, a global provider of customized energy storage solutions. From household systems (5–80kWh) to industrial and commercial storage cabinets (100–215kWh), Dagong ESS designs products that meet energy demands across continents. Their liquid-cooled and air-cooled ESS systems are optimized for integration with smart grids and renewable energy sources.

Dagong ESS's solutions are engineered to enhance power stability, reduce carbon emissions, and support the growing energy requirements of data centers and AI computing hubs. By providing modular, scalable, and internationally compatible systems, Dagong ESS is at the forefront of building a greener, more intelligent energy infrastructure.

Learn more about how Dagong ESS is shaping the energy future at www.dagongess.com

Conclusion: Electricity is the Real Driver of AI

While computing power captures the spotlight, electricity is the true backbone of AI progress. Meeting AI’s growing power needs without harming the planet requires a decisive shift toward renewable energy, enabled by advanced energy storage technologies. Companies like Dagong ESS are leading this transformation—providing the essential energy infrastructure that allows AI to thrive sustainably.