Expensive intelligence: AI boom drives up power demand, Israel unready

Artificial intelligence is leading to a sharp increase in electricity consumption in Israel, according to data presented at a Knesset Technology Committee meeting today (Monday). Experts participating in the discussion voiced concerns about the rising demand for electricity and warned that Israel is not prepared for the additional energy requirements.

During the discussion, it was noted that due to the AI revolution, the International Energy Agency (IEA) reports that global electricity consumption will increase by 3.4% annually. Preliminary data in Israel indicates an expected addition of about 500 megawatts in the coming years, equivalent to the electricity consumption of approximately half a million people.

On the other hand, the discussion also highlighted the significant contribution of using artificial intelligence in the efficient and smart management of energy systems, improving demand forecasts, enhancing consumer services, and more. However, new risks to the energy security of the system were also noted.

Yoni Goldberg, a partner at a consulting firm specializing in data centers and digital infrastructure, stated: "The State of Israel is only moving backward while the rest of the world is moving forward. From the 8th place in AI development, we have fallen to the 20th. Oracle is considering setting up data centers in Israel. If such data centers are established here, it will create more jobs and bring in more technology. This is a national advantage, and there must be a call to establish AI hubs for the cloud giants in the country."

"Many countries worldwide, especially in our region, understand the importance and potential of having a national vision in the field of artificial intelligence and its implications," said Committee Chairwoman MK Orit Farkash-Hacohen. "Unfortunately, the Israeli government has no strategy regarding this. There is no guiding hand here, and while many countries are preparing and positioning themselves, Israel is falling behind and missing out on massive investments that could come its way. The government has a duty not to be complacent and to lead a clear national initiative supported by significant budgets so that Israel can stand alongside other countries globally."

The committee chairwoman called on the government to prepare for the challenges in the electricity sector, to understand the issues, develop a policy, and provide incentives to enhance demand management. She also requested a report from the Energy Ministry and other relevant bodies on the implementation status of the committee's recommendations within six months.