Japan Weighs Data Center Power Demand Amidst AI Advancements

Japan's Ministry of Economy, Trade, and Industry (METI) acknowledges potential implications of data center expansion on electricity demand. However, the ministry notes the uncertainty in predicting the impact of specific technologies like DeepSeek. The government's draft basic energy plan forecasts increased electricity generation by 2040, citing growing AI utilization.

The emergence of DeepSeek raises questions about whether its potential energy efficiency could reduce or increase electricity demand. Analysts remain divided on this issue, as the affordability and adoption of the technology remain unknown.

METI emphasizes the complexity of factors influencing AI-related energy demand, including performance improvements, cost reductions, and energy-saving innovations. The ministry stresses the challenges in isolating the impact of a single example on future demand, highlighting the importance of securing decarbonized power sources to meet growing needs.