The rise of AI puts East Asian countries in the spotlight. Electricity consumption by the region’s data centres is expected to more than double, with the expansion of AI data centres significantly contributing to this growth. Accordingly, their contribution to overall electricity demand growth in the region is expected to rise significantly. At the same time, East Asia is home to prominent semiconductor industries, producing chips that are essential for powering AI systems. Almost six out of every ten chips produced, whether graphics processing units (GPUs) or central processing units (CPUs), are manufactured in the region, underscoring East Asia’s central role in the global semiconductor supply chain.
While AI is expected to be a significant driver of electricity demand, it also has major use cases in the energy sector and can contribute to more efficient and optimal processes. A major area of use is in the electricity system, specifically more optimal integration of VRE sources such as solar PV and wind. Utilising AI effectively in this field is particularly relevant for East Asia since countries such as Chinese Taipei, Japan, Korea and People’s Republic of China have all set net zero targets, even though the targets and timelines for expanding renewable energy sources vary between countries.
Korea aims to produce 29.2% of its electricity from renewables by 2030. Japan has set a similar target for 2030, although its VRE share in 2024 was nearly twice that of Korea. Meanwhile, China set a goal of reaching 1 200 GW of renewable capacity by 2030, achieving this target six years ahead of the date, by 2024. Against this backdrop, this report “Energy and AI in East Asia” published by IEA aims to provide a comprehensive analysis of the potential for a collaborative relationship between AI and energy in East Asia and policy recommendations on how to maximise it.
Access the report here