- Japan’s Industry Ministry expects electricity demand to rise due to expanding data centres, but predicting DeepSeek’s impact remains complex.
- The government projects a 10-20% increase in electricity generation by 2040, driven by AI-related consumption and data centre growth.
- Analysts are divided on whether AI advancements, like DeepSeek’s energy-efficient technology, will reduce or increase overall electricity demand.
Japan’s Industry Ministry recognises the potential rise in electricity demand from expanding data centres but struggles to predict changes driven by technologies like DeepSeek. In an email statement, the Ministry of Economy, Trade, and Industry (METI) explains that AI-related energy demand depends on various factors, including AI expansion, performance improvements, cost reductions, and energy-efficient technologies.
These variables complicate assessing AI’s impact on future energy demand based on a single technology. METI emphasises that Japan’s economic growth and industrial competitiveness require securing enough decarbonised power sources to meet rising energy needs. Japan risks losing ground in the global race for AI and other technology sectors without sufficient clean energy.
In December, Japan’s government released a draft of its basic energy plan, a key policy document reviewed every three years. The draft projects a 10-20% rise in electricity generation by 2040, with AI-driven consumption playing a significant role. The plan highlights the growing influence of AI on electricity use as data centres expand to meet increasing digital demands.
Chinese AI startup DeepSeek presents a potential shift in this scenario. The company claims its technology uses less power than its competitors, raising expectations that AI advancements could lower electricity consumption. However, analysts remain divided. Some argue that as AI becomes more energy-efficient, energy demand may decrease, while others believe demand will still rise due to AI’s increasing application across various sectors.
METI points out that AI’s impact on energy consumption remains uncertain because the technology continuously evolves. AI improvements could either reduce or increase energy demand, depending on how efficiently systems function and the extent of their usage.
As AI technology advances, Japan faces mounting pressure to balance rising energy consumption with its decarbonisation goals. The country has set ambitious climate targets for carbon neutrality by 2050. Achieving these goals demands a significant shift toward renewable energy sources, especially as AI technologies spur higher electricity consumption.
Globally, experts express growing concerns over the energy intensity of AI systems, especially in industries relying on massive data centres. Many experts now focus on creating energy-efficient AI models to mitigate the environmental impact of digital technologies.
DeepSeek’s energy-saving potential offers promise, but AI’s overall effect on electricity demand remains uncertain. Japan’s ability to manage this challenge depends on securing reliable, clean energy supplies while staying competitive in technology sectors. METI stresses the importance of continued innovation in AI and energy technologies to maintain Japan’s leadership in the global tech economy.
In conclusion, Japan’s future energy demand will hinge on the interaction between AI advancements, energy efficiency, and decarbonised power sources. Addressing these factors will prove crucial for sustaining economic growth and technological leadership.