Don't be in the dark about the true energy cost of AI
AI is energy-intensive. Big Tech is spending tens of billions on AI accelerators, which has led to a huge increase in power consumption. Over the past few months, multiple forecasts and data points reveal soaring electricity demand.
Estimates of necessary energy do exist, but the organizations best placed to share the numbers — companies like Meta, Microsoft, and OpenAI — aren’t sharing the relevant information.
Morgan Stanley is estimating global data center power use will triple this year. Wells Fargo is projecting AI power demand to surge 550% by 2026.
What parts of AI are using all that energy?
A big unknown is where the servers are going to end up. That matters a whole lot, because if they’re at Google, then the additional cooling energy use is going to be somewhere in the range of a 10% increase. But global data centers, on average, will add 50% to the energy cost just to keep the machines cool.
AI power demand is forecast to rise at a rapid rate is showing no signs of slowing as Big Tech continues to spend billions on AI infrastructure.
Where will the energy come from? Is the grid ready?
The one thing we know and understand is supply and demand. And we understand the costs that are associated with that theory, get passed along to all of us. Which leaves with less for the fun things we enjoy in life!
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