In a recent update to a group of investors, we talked about the looming challenge of AI’s energy appetite: The CEO of Arm forecasts that without efficiency gains by the end of the decade, “AI data centers could consume as much as 20% to 25% of U.S. power requirements. Today that’s probably 4% or less”. The International Energy Agency [reported] that a request to ChatGPT requires “2.9 watt-hours of electricity on average - this is equivalent to turning on a 60 watt lightbulb for slightly under three minutes.” It’s these second order effects of an AI industry boom that necessitate acceleration in energy transition trends, and inform part of our investment interest in efforts to build resilience in the electrical grid.
Suprith Reddy
2mo
A lot more people need learn about this. Very useful.
Morgan M.
2mo
Insightful!
Academic Research Specialist | Speaker | Web3 & DeFi Architect | Tokenomics Expert | Sustainability Advocate | Founder of TiCKPAY & BTC Protocol - Bridging Financial Institutions with Decentralized Systems via BTCP Chain
2moThe solution involves focusing on efficiency gains in AI data centers and accelerating energy transition trends to address the increasing energy appetite of AI technologies. This includes investments in building resilience in the electrical grid to mitigate the potential impact of AI data centers consuming a significant portion of power requirements and also implement green energy solutions. Solar power injection back to the grid can be a viable solution to address energy demands, but currently energy companies are not offering a fair price for this contribution, it can hinder widespread adoption. It's crucial for policies and regulations to encourage fair compensation for renewable energy contributions to incentivize individuals and businesses to invest in solar power and other renewable energy sources.