Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: AI and Crypto push energy demand to record highs worldwide in Simple Termsand what it means for users..
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The energy demand from AI (together with digital assets like cryptocurrency) is rapidly increasing due to the growing reliance on data centres and high-performance computing. Overall, AI’s environmental footprint, from soaring energy and water use to e-waste, is a significant concern.
According to a January 2026 report on energy use in the tech sector, the U.S. is the largest electricity consumer among the world’s major technology hubs. The study was conducted by the decentralized crypto exchange firm Atmos, which examined the energy usage of leading tech countries, including data centres, AI infrastructure, and cryptocurrency mining.
The research examined how much power different countries use for tech and how hard that usage pushes their electrical grids. The study measured factors like total electricity consumed by data centres and mining operations, what percentage of a country’s power supply goes to technology, how much AI computing hardware each country has installed (measured in H100 equivalents), and how big their overall power grids are. By combining these indicators, each country got a score out of 100.
The top ten heaviest users of electricity are:
| Country | Total Power Capacity (MW) | Mining vs Capacity () | Electricity Production (TwH) | Mining Energy (TWh/yr) | Mining vs Production | Energy Consumption Score |
| United States | 19817.9 | 1.27 | 4,494 | 126.7 | 2.82 | 96.2 |
| China | 288.6 | 0.33 | 9,456 | 70.7 | 0.75 | 93.3 |
| United Arab Emirates | 6363.0 | 0.01 | 165 | 0.0 | 0.02 | 90.2 |
| Canada | 5.5 | 1.63 | 633 | 21.7 | 3.43 | 85.1 |
| Malaysia | 37.1 | 2.71 | 188 | 8.4 | 4.47 | 82.1 |
| Russia | 5.7 | 0.62 | 1,178 | 15.6 | 1.33 | 78.5 |
| Saudi Arabia | 2394.6 | 0 | 423 | 0.0 | 0.01 | 74.9 |
| Germany | 25.2 | 0.48 | 514 | 10.2 | 1.99 | 71.3 |
| South Korea | 3024.4 | 0.02 | 618 | 0.2 | 0.04 | 64.1 |
| Iceland | 0.4 | 2.14 | 20 | 0.5 | 2.68 | 57.4 |
As evident from the above table, the U,S. takes first place as the world’s most energy-consuming tech hub. American technology companies use 126.7 terawatt-hours annually, enough electricity to power about 12 million homes for a year. Altogether, that’s nearly 3% of the country’s entire power output. The US also has almost 40 million high-performance AI chips installed, which together draw roughly 20K megawatts of power.
The U.S. statistics are:
- Total Power Capacity: 19,818 MW
- Electricity Production: 4,494 TWh
- Estimated Electricity Demand: 15,230 MW
- Mining Energy: 126.7 TWh/year
- Mining vs Production: 0.03%
- AI Compute Power: 39.7 million H100 equivalents
China
China ranks second, with around 400K H100-equivalent AI computing units installed. Alongside this, the country has a sizable mining network that consumes about 70.7 terawatt-hours of electricity per year. Yet, given China’s massive energy production of 9,456 terawatt-hours annually, this technological demand represents less than 1% of the nation’s total power output.
United Arab Emirates
The UAE ranks third with a tech infrastructure that stands out for a country of its size. The Emirates has deployed more than 23 million H100-equivalent AI chips, which is the second-highest concentration globally after the US. The country also produces 165 terawatt-hours of electricity annually, more than enough to support its growing technological needs, with mining alone accounting for just 0.02% of total output.
Canada
Next on the list is Canada, where tech companies consume 21.7 terawatt-hours each year. Mining specifically eats up more than 3.4% of power output here, one of the highest percentages in the study. This means local crypto businesses in Canada use 1.6% of the country’s total grid capacity, drawing power at rates that push harder on the electrical system than what you see in most developed countries.
Malaysia
Malaysia rounds out the top five with 8.4 terawatt-hours in annual tech energy consumption. The country has about 39,000 H100-equivalent AI chips, fewer than other top-ranked states. However, technology operations here still account for 4.5% of total electricity production, among the highest rates in the world. This means Malaysia’s tech sector creates disproportionate strain compared to larger nations.
Across all nations, technology’s share of global electricity use has jumped from around 3% to more than 7% over the last decade. That growth is only going to speed up. This means that new ways need to be found to reduce the consequential environmental impact of this latest technological boom.