Japan’s industry ministry acknowledged concerns that the expansion of data centers could drive up electricity demand but said it remains difficult to predict how emerging technologies like DeepSeek may influence future energy consumption.
In December, the government released a draft of its basic energy plan, a key policy document updated every three years, projecting that electricity generation could rise between 10-20% by 2040, partly due to higher AI-driven usage. However, the recent emergence of Chinese AI startup DeepSeek, which is believed to consume less power than its competitors, has led to mixed views on whether AI-related energy demand will rise or fall.
In an emailed statement, the Ministry of Economy, Trade and Industry (METI) noted that AI-driven energy consumption depends on multiple factors, including advancements in AI performance, cost reductions, and the development of energy-efficient technologies. “For this reason, it is difficult to describe the impact on future energy demand with a single example,” METI said.
The ministry also emphasized that Japan’s economic growth and industrial competitiveness will hinge on securing sufficient decarbonized power sources to meet increasing demand. As AI adoption accelerates, policymakers and industry players continue to evaluate how technological advancements will reshape Japan’s energy landscape.
