With the rapid development of high-tech industries, particularly chip manufacturing and the expansion of artificial intelligence (AI) data centers, electricity demand is also surging. It is expected that by 2050, Japan’s electricity demand will increase by 50%, requiring the current energy production of 1 trillion kilowatt-hours to be increased to a range of 1.35 to 1.5 trillion kilowatt-hours. If renewable energy production cannot be increased, Japan may face unstable electricity supply, impacting its carbon reduction goals and industrial policies.
The increase in AI applications has prompted Japan to heavily invest in the chip industry, attracting companies like TSMC to build factories and investing in Rapidus with the goal of producing 2-nanometer chips by 2025. At the same time, the demand for high-performance infrastructure is rising, with data centers needing to provide more electricity per rack. However, the rapidly growing electricity demand is becoming a significant constraint on the development of this industry.
The surge in energy consumption by the tech industry is a global issue, not limited to Japan. It is estimated that by 2030, the electricity consumption of AI data centers will account for 20%-25% of the U.S. grid capacity, having a significant impact on the American power system. By 2026, the global electricity demand of data centers may double, accounting for 32% of Ireland’s total electricity consumption.
Therefore, to address the electricity supply shortage caused by increasing electricity demand, Japan could consider the following measures:
First, fully promote renewable energy, such as solar and wind energy. Solar power generation technologies mainly include photovoltaic and solar thermal power generation, while wind energy is converted into electricity through wind turbines, which is key to improving energy efficiency. Additionally, the development of smart grid technology can help better manage electricity resources and achieve efficient power supply. Lastly, raising public awareness of the importance of energy conservation and sustainable energy is crucial.
These measures require the joint efforts of all sectors of society to address the challenges of future electricity supply.
