Tech giants redirect investments in energy due to AI’s huge consumption
Date
10/20/2024 2:24:09 AM
(MENAFN) Tech giants like Google, Microsoft, and Amazon are increasingly redirecting their investments in energy due to the significant energy consumption associated with artificial intelligence (AI). The rapid evolution of generative AI is contributing to a substantial increase in energy demands, particularly as these advanced models are integrated into data centers. According to data from investment bank Goldman Sachs, energy demand from data centers, which have experienced stagnant consumption for many years, is projected to rise by an astonishing 160 percent by 2030.
Currently, data centers globally account for approximately 2 percent of total energy consumption, but this figure is expected to escalate to between 3 percent and 4 percent by 2030. In the United States, energy demand has remained flat over the past decade, but that trend is anticipated to shift as the energy requirements of data centers are expected to generate a 2.4 percent increase by 2030. This shift reflects a growing recognition of the energy-intensive nature of AI technologies and the need for sustainable energy solutions to support their growth.
In response to the escalating energy needs of generative AI, Google has made plans to utilize small nuclear reactors to power its AI data centers. The tech giant has entered into a partnership with Kairos Power, aiming to have the first reactor operational by 2030 and additional reactors by 2035. This innovative approach underscores the urgency for tech companies to seek alternative and more sustainable energy sources to meet their operational demands.
Microsoft, alongside ChatGPT developer OpenAI, is also actively investing in energy solutions. Microsoft has secured a deal to continue operations at the Three Mile Island power plant, demonstrating its commitment to sustainable energy sources. Meanwhile, Amazon announced its intention in March to acquire a nuclear data center in Pennsylvania. These moves by major tech players highlight a concerted effort to address the growing energy demands of AI technologies while also exploring innovative and sustainable energy solutions to support their operations.
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