METI Japan says it is difficult to predict the impact of DeepSeek on electricity demand.

The Japanese industry ministry knows that the expansion of data centers may increase electricity demand, but it's difficult to predict what will happen with the advent of DeepSeek.

The government published a draft version of its basic energy policy, which is a major document that is reviewed every three years. It projected an increase in electricity production between 10-20% from 2040, and also cited a higher AI usage.

Analysts are divided on whether or not the rise of Chinese startup AI DeepSeek will lead to a decrease in electricity demand. Or, if it could increase, as the technology becomes more accessible and affordable.

METI, the Ministry of Economy, Trade and Industry of Japan, stated in an emailed comment that the energy demand associated with AI is complex, and includes factors like the expansion of AI, by improving performance and costs, and developing energy-saving technology.

It said that it was difficult to give a single example of the impact future energy demands will have. The report noted that Japan's industrial competitiveness and economic growth would depend on the ability to find enough decarbonised sources to meet the demand. (Reporting and editing by Michael Perry; Katya Golubkova)

(source: Reuters)