Filenews 2 November 2025 - by Paris A Fokaidis
Artificial intelligence (AI) is today the most rapid technological development of our time. From our mobile phones and online searches, to automated driving and health systems, AI is transforming every aspect of everyday life.
But behind this "invisible intelligence", there is an ever-increasing need for energy. The computing infrastructure that powers its operation - from huge data centers to small processors on every device - requires significant energy resources.
Globally, AI is starting to shape a new energy landscape, with implications for consumption, the environment and energy security.
For Cyprus, a country that is simultaneously in a phase of digital and green transition, the question is clear: how do we balance between the dynamics of technological innovation and the increasing energy demands that it entails?
The energy footprint of artificial intelligence is already visible worldwide, even if it is rarely noticed by users. Every question asked in a system like ChatGPT, or every photo analyzed by a facial recognition algorithm, requires computing power – and, by extension, electricity.
Data centers, i.e. the data centers that host these computers, are currently responsible for about 2% of global electricity consumption, a percentage that, according to international estimates, could reach 7-8% by 2030.
In the United States, giants such as Microsoft and Google are investing in "green" data centers, utilizing renewable energy sources and heat recovery technologies, in an attempt to reduce their carbon footprint. In contrast, Ireland is already facing an electricity adequacy problem, as data centers consume over 17% of the country's total output, which has led the government to impose restrictions on new installations. Finland is an example of sustainable utilization: waste heat from servers is used for district heating of homes in Helsinki, demonstrating how innovation can be turned into energy efficiency.
Consumption in Cyprus
Cyprus is currently at a critical juncture: its energy transition coincides with its rapid digital growth. Over the past decade, total electricity demand has increased by about 15%, while the country is still heavily dependent on fossil fuels for its production.
At the same time, energy storage infrastructure remains limited, and the rate of renewables integration – although increasing – is not yet sufficient to meet peak needs.
In this context, the gradual integration of AI technologies in public services, industry, universities and the private sector, and the eventual development of data centers on the island, is expected to significantly increase the demand for stable and reliable electricity.
Already, several organizations in Cyprus are leveraging AI applications for data analysis, process automation, and optimization of production systems – practices that, while improving efficiency, require increased computing power.
The challenge for Cyprus is twofold: on the one hand, to support its digital strategy and the development of new technological infrastructure, and on the other hand, to do so without burdening its already stressed energy system. With the right use of AI, the country could become a pilot for smart energy management, integrating AI tools into power grids, buildings, and industry. Thus, Cyprus has the potential to evolve from a simple consumer of digital energy to a pioneer of the "smart" energy transition in the Eastern Mediterranean.
The dual use of AI
Artificial intelligence is expected to affect energy demand in Cyprus in two conflicting ways: on the one hand, by increasing consumption, on the other hand, by contributing to its optimization and reduction.
A. The widespread application of AI – from data centres to smart grids and electric vehicles – will require more computing power and, by extension, more energy. The spread of cloud computing, autonomous systems and digital infrastructure in businesses and public services will intensify this trend. In China, for example, the operation of artificial intelligence platforms is estimated to consume energy equal to that of two million households.
B. On the other hand, AI itself can be an energy-saving tool. In Denmark, AI algorithms optimize the operation of wind farms, increasing their efficiency, while in Spain, the electricity grid operator uses AI systems for accurate load forecasting, saving energy and reducing emissions.
For Cyprus, AI can become an ally in the transition towards a more efficient and sustainable energy system. If used correctly, it can contribute to the optimization of RES production, storage management and the smart operation of grids – turning a potential threat of increased consumption into an opportunity for energy savings and sustainable development.
The role of the GSI
Cyprus today has a unique opportunity to leverage artificial intelligence as a lever to modernize its energy system. The planned interconnection through the Great Sea Interconnector will enhance energy security and enable wider penetration of renewable energy sources.
In this context, AI can act as a decisive factor for the development of smart grids, the forecasting of production and demand, as well as the optimization of energy storage.
At the same time, the application of AI in smart buildings and public works can lead to a significant reduction in consumption, while the creation of pilot applications in universities, schools and municipalities could make Cyprus a model of "smart" digital energy management. Utilizing the research knowledge and technological infrastructure of the university and private sectors is essential to achieve this transition.
With a coordinated strategy and investments in green energy, storage and digital innovation, AI can be not just a challenge for Cyprus, but an opportunity for energy sovereignty and sustainable development.
AI is not just another energy challenge, it is also a powerful tool to manage it. Cyprus is at the crossroads of two transitions – green and digital – and their success will depend on how they are combined.
With timely planning, investments, and the utilization of scientific knowledge, the country can transform into a model island of smart energy, where technology serves sustainability and innovation contributes to a cleaner, more efficient future.
* Professor, Faculty of Engineering / Frederick University
