Around 14 billion online electronic devices across the globe unnecessarily waste $80bn worth of power every year, the International Energy Agency (IEA) said in a report.
In a report, More Data, Less Energy: Making Network Standby More Efficient in Billions of Connected Devices, IAE said due to inefficient technology, the internet-connected devices will significantly contribute to the world's increasing electricity demand and will would considerably worsen by 2020, with an estimated $120bn wasted.
However, manufacturers can implement simple procedures to reduce the waste while improving energy efficiency in online devices, according to the report.
The digital economies' electricity demand is growing at an alarming rate, according to report.
IEA Executive Director Maria van der Hoeven said the proliferation of connected devices provides benefits to the world but cost is far higher than it should be currently.
"Consumers are losing money in the form of wasted energy, which is leading to more costly power stations and more distribution infrastructure being built than we would otherwise need - not to mention all the extra greenhouse gases that are being emitted," Hoeven said.
"If we adopt best available technologies we can minimise the cost of meeting demand as the use and benefits of connected devices grows."
The report suggests that by implementing better energy efficiency measures on online devices, 600TWh of energy, which is equivalent to shutting 200 standard 500MW coal-fired power plants which would cut emissions by 600 million metric tons of CO2, would be saved in future.
The report proposes technical solutions and policy alternatives for reducing energy waste and calls policy makers, standards development organisations, software and hardware developers, designers, service providers and manufacturers to assist on to reduce energy demand.