Artificial intelligence is at a critical juncture in technological transformation, particularly concerning its substantial electricity requirements. As a result, technology companies are increasingly venturing into the energy sector.
The immense power demand of AI has prompted these companies to explore innovative ways to supply electricity. The surge in AI development is driving a shift towards enhanced solar power and energy storage solutions, which could help meet the significant electricity demands of the industry’s data centers.
Artificial intelligence is on the agenda with the need for electricity
Sam Altman, CEO of OpenAI, and venture capital firm Andreessen Horowitz are among the investors who have contributed $20 million to Exowatt, a company dedicated to supplying clean energy for large data centers. According to The Wall Street Journal, Exowatt focuses on utilizing solar energy to power these facilities. This development is particularly notable as OpenAI’s partner, Microsoft, seeks approval to use nuclear power for its AI operations. Additionally, Amazon, a major investor in the AI company Anthropic, has invested in over 100 renewable energy projects last year, maintaining its status as the world’s largest corporate buyer of renewable energy for the fourth consecutive year.
This trend highlights a shift among tech companies toward embracing green energy. However, it also raises questions about the necessity of such high energy consumption by these companies in the first place.
The International Energy Agency reports that global energy-related CO2 emissions have risen to over thirty-seven billion tonnes in 2023, during a period when efforts are being made worldwide to achieve net-zero emissions. A significant portion of this increase is attributed to China, driven by outdated technologies like the internal combustion engine.
In the U.S., data centers currently account for approximately four percent of electricity consumption, a figure expected to increase to six percent by 2026. Additionally, the energy-intensive process of mining cryptocurrencies, such as Bitcoin, continues to consume significant amounts of electricity.
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