DeepSeek’s Impact On Power Demand Still Uncertain, Says Japan’s METI

Japan’s industry ministry acknowledges concerns that data center expansion may increase electricity demand but says it is still too early to predict how a single technology, such as DeepSeek, may influence energy consumption, Reuters reporter Kayta Kolubkova wrote.

Japan’s Ministry of Economy, Trade, and Industry (METI) emphasized that AI-related energy demand depends on multiple factors. I Photo: Rs1421 Wikimedia Commons

In late December, the government released a draft of its basic energy plan, a major policy document updated every three years. The plan projected that electricity generation could rise by 10-20% by 2040, citing increased AI-driven usage.

However, the emergence of Chinese startup DeepSeek—which reportedly requires less power than its competitors—has led analysts to debate whether overall electricity demand will decrease due to greater efficiency or increase as AI technology becomes more accessible and widespread.

In an emailed statement, Japan’s Ministry of Economy, Trade, and Industry (METI) emphasized that AI-related energy demand depends on multiple factors, including improvements in AI performance, cost reductions, and the development of energy-saving technologies.

"For this reason, it is difficult to determine the impact on future energy demand based on a single example," the ministry stated. It also noted that Japan’s economic growth and industrial competitiveness would hinge on securing adequate decarbonized energy sources to meet rising demand.