METI Japan: DeepSee Effect On Electricity Demand Is Still Difficult To Predict

DeepSek, is expected to trigger electricity demand (photo: x @EnergyInnovLLC)

JAKARTA - The Ministry of Industry of Japan (METI) stated that the data center's expansion could increase electricity demand, but it is still difficult to predict how energy demand will change with the emergence of technologies such as DeepSek.

At the end of December, the Japanese government released a draft basic energy plan, a major policy document that is updated every three years. The document estimates that the electricity generation will increase by 10-20% by 2040, mainly due to the wider use of AI.

However, the emergence of an AI startup from China, DeepSek, which is thought to be more power efficient than its competitors, raises dissent among analysts. Some believe electricity demand will decrease, while others predict an increase along with the increasingly affordable AI technology.

METI also stated that energy demand related to AI involves various complex factors, including expansion of AI usage through increased performance and cost efficiency, as well as the development of energy-efficient technology.

"For this reason, it is difficult to describe its impact on future energy demand based on just one example," METI said, quoted by VOI from Reuters.

METI also stressed that the economic growth and competitiveness of Japan's industry will depend heavily on the availability of low-carbon electric resources to meet increasing demand due to AI developments.