Japan is preparing for a significant rise in electricity demand by 2040, driven by artificial intelligence.
The country expects a 10-20% increase in energy production, primarily to support data centers and chip manufacturers. However, China鈥檚 DeepSeek is introducing a disruptive factor that could challenge these forecasts.
DeepSeek鈥檚 AI assistant, known for its efficiency and lower operational costs, is now surpassing ChatGPT in downloads on Apple鈥檚 App Store. This shift has led analysts to reconsider investments in power producers that were expected to benefit from AI-driven electricity consumption.
A More Energy-Efficient AI Model
DeepSeek鈥檚 technology is designed to use fewer resources, which could limit the expected surge in power demand. While this may impact energy companies that anticipated AI-driven growth, experts warn that overall consumption might still rise. The availability of low-cost, energy-efficient AI models could encourage more businesses to adopt AI, ultimately sustaining high electricity usage.
Japan, which generates only 13% of its energy domestically, has updated its forecasts to account for an additional 5.14 million kWh by 2034. As AI reshapes the energy landscape, the country faces renewed debates over its power sources.
The Debate: Nuclear vs. Renewables
With rising AI energy needs, Japan is once again evaluating its energy strategy. Some experts argue for restarting nuclear reactors to meet demand, while others push for greater investment in renewables. These discussions come as Japan continues to navigate the long-term effects of the Fukushima disaster.
DeepSeek鈥檚 impact highlights a broader global challenge, how to balance AI growth with sustainable energy solutions.
As Japan reassesses its power strategy, its choices could influence how other nations manage AI-driven energy consumption in the years ahead.
