External publications

The energy consumption challenge and disparities in the concentration of data centres among the G20 countries

Peng, Si / Tuhinsubhra Giri / Wulf Reiners
External Publications (2025)

in: T20 South Africa, TF Digital Transformation, Policy Brief (November)

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The accelerating pace of digitalisation - driven by artificial intelligence (AI), e-commerce, cloud computing, and cryptocurrencies - has significantly increased the global demand for data centres. While these facilities underpin the digital economy, their rapid expansion has created substantial challenges in energy consumption and sustainability. The International Energy Agency (IEA) estimates that data centres accounted for approximately 1–2% of global electricity use in 2022, excluding the additional energy required for associated infrastructure. With the continuing proliferation of AI-driven applications, this trend is expected to intensify dramatically, raising critical concerns regarding carbon emissions, energy security, and the broader environmental impact of digital transformation. As nearly 90% of global data centres are located within G20 countries, the group holds a pivotal position in addressing these challenges. However, considerable disparities exist in the distribution of data centres between and within the members of the group. The United States alone accounts for approximately 46% of global data centres while China follows with ten times fewer facilities. Such concentration amplifies energy consumption pressures and risks deepening global digital and economic inequalities. This policy brief examines the relationship between digitalisation and energy use through the lens of data centre distribution within the G20. It highlights the uneven concentration of data infrastructure and energy demand, revealing significant imbalances in data power and resource allocation. The brief concludes with policy recommendations for fostering climate- and resource-efficient digitalisation, enabling G20 members to align data-driven growth with global sustainability and net-zero objectives.

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