AI Expected to Account for 5% of Electricity Consumption in Latin America and the Caribbean by 2035

Key Takeaways

AI is projected to account for 5% of total electricity consumption in Latin America and the Caribbean by 2035, equivalent to over 120 TWh annually.
The region currently has 455 AI data processing centers, which are estimated to represent 1.6% of total electricity use by 2023.
Efforts are needed to improve energy efficiency, regulatory frameworks, and investments in renewable sources to meet the rising energy demands from AI technology.

AI’s Growing Energy Impact in Latin America

Artificial intelligence (AI) is anticipated to significantly influence energy consumption in Latin America and the Caribbean (LAC), with projections indicating that by 2035, AI will account for 5% of the region’s total electricity usage. This figure translates to more than 120 terawatt hours (TWh) annually, highlighting the substantial energy demands associated with AI development.

Currently, LAC is home to 455 data processing centers focused on AI applications. Each of these centers is estimated to consume an average of 50 gigawatt hours (GWh) per year, which is based on a broader analysis of 7,000 existing centers worldwide that collectively use 350 TWh. Therefore, in 2023, these AI facilities are already estimated to contribute 1.6% of the entire regional electricity demand.

The global number of data centers is projected to grow by 165% from 2023 to 2030, indicating an average annual increase of 15%. This rapid expansion is set to create unprecedented energy requirements for running AI servers, particularly for algorithm training, query execution, and managing complex cooling systems.

Andrés Rebolledo, Executive Secretary of the Latin American Energy Organization (OLADE), emphasized the need for sustainable energy planning that aligns with the digital transformation within production systems. As AI competes for energy resources alongside essential sectors such as residential, industrial, and transportation, the balance becomes crucial.

In light of the exponential growth in data and the rise of generative artificial intelligence, it is vital for countries in LAC to enhance their regulatory frameworks and focus on energy efficiency in their data centers. Furthermore, continued investments in renewable energy sources are essential to minimize the environmental consequences of advancing technology and to ensure that the energy needs of all critical sectors are met responsibly.

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