Digital growth must not outpace sustainability goals, says Qatar-backed report
Author: PPD Team Date: July 22, 2025
A report backed by Invest Qatar and Iberdrola Innovation Middle East warns that unless clean energy investment keeps pace, digitalisation could strain power grids and delay net zero transitions.
Data centres consumed 1.5% of global electricity in 2024, with demand rising 12% annually since 2017. By 2030, their consumption is projected to double to 945 TWh, exceeding Japan’s current electricity use. AI is the main driver. AI-enabled data centres are expected to use four times more power by 2030. One ChatGPT query already uses up to ten times the electricity of a Google search.
Global data centre investments reached $500 billion in 2024. The rise of 5G and IoT—expected to surpass 32 billion devices by 2030—will add further strain.
The report says digital tools can also enhance energy efficiency. Intelligent Transport Systems, for example, could cut transport energy use by 25%. AI can optimise power generation, grid operation, and real-time load balancing.
Qatar is cited as a case study. Smart city projects in Lusail and Msheireb use IoT-based energy management. Msheireb Downtown Doha has reduced power consumption by 30%. The 2,000 MW Dukhan solar project will double national solar capacity to 4,000 MW by 2030.
Other examples include Singapore’s 2024 Green Data Centre Roadmap, AI-managed virtual power plants in Germany, and liquid cooling in hyperscale centres.
The report emphasises that efficiency measures must be paired with clean energy investments and grid upgrades to avoid delays in data centre deployment.
Qatar’s digital and clean energy plans are aligned with its Vision 2030. Iberdrola’s Doha office has grown six-fold since 2018, with solutions now applied in Spain, the UK, the US, Brazil, and Australia. A 2022 agreement with Invest Qatar supports the development of AI tools to optimise electricity networks.
The report urges governments and companies to set clear benchmarks and invest responsibly to ensure digitalisation does not undermine sustainability targets.
