Artificial intelligence (AI) will account for 5% of total electricity consumption in Latin America and the Caribbean (LAC) by 2035, according to a technical document prepared by the Latin American Energy Organization (OLADE). This figure—equivalent to over 120 terawatt-hours (TWh) annually—shows the significant energy impact that the rapid development of this technology will have on the region.
Currently, there are 455 data processing centers for AI applications in LAC. Based on an average consumption of 50 gigawatt-hours (GWh) per center per year—extrapolated from the 7,000 centers worldwide with a total consumption of 350 TWh—it is estimated that in 2023 these facilities already accounted for 1.6% of the region’s electricity consumption.
A 165% increase in the number of data centers worldwide is projected between 2023 and 2030, representing an average annual growth rate of 15%. At this same rate of expansion, the region will face an unprecedented energy demand related to the operation of AI servers, particularly in critical areas such as algorithm training, query execution, and the complex cooling systems required to maintain operations.
OLADE’s Executive Secretary, Andrés Rebolledo, stated that “the digital transformation of our productive systems must go hand in hand with responsible and sustainable energy planning, as AI could compete for energy resources with priority sectors such as residential, industrial, or transportation.”
With the exponential growth of data and the expansion of generative artificial intelligence, it is important for countries in the region to strengthen their regulatory frameworks, improve the energy efficiency of their data centers, and continue to invest in renewable energy sources to mitigate the environmental impact of technological advancement.
