To ask His Majesty’s Government what assessment they have made of the amount of energy used in internet activity, and in particular in mining cryptocurrencies.
My Lords, the National Energy System Operator has estimated that data centres consume around 2.5% of the UK’s electricity. The UK is not a major centre for cryptocurrency mining. We estimate the share of power consumed in the UK for this purpose to be negligible.
I thank my noble friend for that Answer. I do not know whether the House quite realises the staggering quantities of energy involved in normal internet activity and, in particular, in crypto mining. It has been estimated that the usage is approximately the same as that of a mid-sized European country, such as the Netherlands or Denmark. How much of this activity is based in the UK? Who is doing it and where? Does my noble friend agree that it has an adverse impact on carbon emissions and brings with it electronic waste? Will he agree to undertake an assessment of the potential adverse effects on carbon emissions of internet activity and, in particular, of crypto mining, so that we can have an honest discussion about the future and the effect of this on our climate change objectives?
My noble friend is right to raise this important question. I should say that the Government keep this under review. In fact, we reckon that only 0.2% of global crypto mining takes place in the UK. The International Energy Agency has estimated that, in 2022, 2% of total global energy demand came from data centres, cryptocurrencies and AI. It expects that to double by 2026. However, it makes the point that it expects that doubling to be met by an increase in clean energy sources. The lesson here for us is that we need to power on with our aim to get to clean power by 2030.
Despite the Minister’s earlier Answer, nevertheless the Government are keen to see the building of data centres. Will the need for additional energy consumption form part of the National Energy System Operator’s strategic spatial energy plan and the centralised strategic network plan? What assumptions are being made about the sustainability of the energy sources needed for those data centres?
The work of NESO in mapping out how we get to clean power by 2030 is the start of this process, and we will keep those matters within the review. We are working very hard with the network companies and Ofgem to accelerate investment and reform in the grid and in connection. That is a crucial matter in wanting to see an expansion of data centres in the UK where we have a significant advantage and an increasingly important market.
My Lords, I declare my technology interests as set out in register. Does the Minister agree that, going broader, we need far greater transparency about all the power that it takes to fuel these new technologies—compute power, energy power, and financial and natural resources? Is it time that we reviewed the power usage effectiveness measure, or PUE, for data centres? Is it the case that all these new technologies need to be considered not just in respect of how efficient they are and how effectively they are fuelled but, crucially, that this is done in a sustainable manner?
My Lords, I certainly accept the challenge from the noble Lord: as we wish to see the encouragement of data centres and the use and development of AI in the UK, clearly we want it to be sustainable. I make the point that, in the first place, newer cryptocurrencies use less energy than the original ones, and, secondly, that data centres are increasingly looking to energy efficiency methods. AI can be used as one way in which to improve our management of energy efficiency.
My Lords, the Minister said that current data centres use about 2% of total electricity generation. Can he quantify that in respect of how many terawatt hours are currently being used by data centres? With the Government’s ambition for AI and the development of more data centres, what will be the requirement in terawatt hours by 2030?
My Lords, my understanding is that NESO has estimated that 7 terawatt hours will be used by data centres in 2025, rising to 22 terawatt hours in 2030 and to 62 terawatt hours in 2050. As a comparison, it expects annual electricity demand in 2050 to be between 533 and 700 terawatt hours.
My Lords, the expansion of data centres will require a significant expansion of the grid and of energy sources. In a written reply to me, the Minister indicated that, for the high-level grid, there is something like a four-year lead time for securing equipment. Furthermore, on energy sources, data centres need reliable sources of supply. Inevitably, that will mean the development of nuclear power, including small modular reactors. When will the Government get on and make a decision about the future of the small modular reactor programme?
My Lords, I agree with everything my noble friend said. He knows that we have a programme within Great British Nuclear to appraise the technology involved in a number of shortlisted small modular reactors. It is making considerable progress. We expect further announcements to be made in spring. My noble friend will understand that there are discussions taking place within the spending review.
My Lords, the Minister has already acknowledged the energy demands and pressures. The noble Viscount, Lord Stansgate, raised the issue of mining and the resource use going into data centres. I would add a further one to that: water use. A typical data centre uses the same amount of water as 100,000 homes. We have a situation where seven out of 17 regions in England are expected to have water stress by 2030, rising to 12 by 2040. Are the Government considering ensuring that all new data centres use closed systems for water, so that we do not put more pressure on this vital resource?
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Internet Activity: Energy Use · Order Paper · Order Paper