Falling AI Costs Drive Higher Global Electricity Demand
McKinsey and Boston Consulting Group report that cheaper AI models are increasing overall electricity demand as companies scale usage across more business functions.
Reports from McKinsey & Company and Boston Consulting Group indicate that falling token prices and more affordable AI models are driving an increase in overall electricity demand. Although individual AI tasks have become less power-intensive, the lower cost of entry allows companies to justify higher-volume implementation across a broader range of business functions.
McKinsey identifies data-center electricity demand as the fastest-growing load segment within OECD power markets. The firm projects that global demand will grow by 24% annually through 2030, before the growth rate slows to 5% between 2030 and 2040.
Boston Consulting Group found that companies with high AI maturity are focusing token spending on specific returns. Their analysis shows that 22% of these companies have established usage limits to control costs, while 50% encourage the use of paid tools to maximize adoption across the organization.
