Tor Björn Minde
Enhetschef
Contact Tor Björn
The status of data center and crypto mining energy use in Sweden
27 February 2023, 20:15
Swedish energy agency has asked RISE to create a basis to follow the development of energy use continuously for digital infrastructure and digital systems, in particular data centers and crypto mining facilities, as well as its impact on the energy system. The Swedish energy agency has published their final report.
RISE has written two background reports that also are published by the agency.
The first report discusses the energy consumption of data centers and their contribution to the digitalization and green transformation of industries. Despite media claims of high energy usage, data centers' energy usage constitutes only 1-2% of global electricity usage. The study covers different types of data center infrastructures, ranging from small in-house facilities to large cloud facilities.
The report suggests a government policy-based reporting requirement for data center operators to improve transparency and accuracy of energy assessments. Data centers can contribute positively to energy systems by performing peak-shaving and energy arbitrage and can utilize the excess heat generated for heating applications. The Swedish data center industry is at the forefront of sustainability, with a growing number of innovations and products emerging from the sector.
The Swedish data center market has experienced substantial growth in recent years, driven by the increased presence of large cloud companies in the country. The current energy usage of data centers in Sweden is estimated by RISE to be 2.8-3.2 TWh in 2022. The trend of increasing energy usage is expected to continue, albeit at a slower pace, due to the new tax regulations and economic downturn. The study predicts that by 2025, energy usage by data centers in Sweden will reach 4.0-4.4 TWh, with a more cautious estimate of 4.4-5.2 TWh by 2030.
The second report offers an assessment of the energy use associated with crypto currency mining in Sweden and its impact on the energy system. Emerging technologies such as blockchain, which enable the use of crypto currency, have driven demand for infrastructure and energy use. However, some crypto currencies require a significant amount of electricity for proof-of-work processing, leading to environmental concerns. The report focuses on crypto currency mining infrastructures, specifically data centers that contain graphics processing units, ASIC mining rigs, and cooling equipment.
The energy use has been stable since 2021, estimated at 1-1.5 TWh per year in Sweden, and is expected to decrease to below 1 TWh by 2025 due to various factors. The report also discusses the potential for crypto mining data centers to interact with power and thermal grids. Finally, the report highlights the emergence of new consensus mechanisms, such as proof-of-stake that could reduce energy use.
Link to news by the Swedish Energy Agency and the published reports [in Swedish]: https://www.energimyndigheten.se/nyhetsarkiv/2023/nya-metoder-behovs-fo…
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