AI Servers To Use As Much Energy As Japan
The AI chip company Nvidia released earnings yesterday. Its revenue continues to rise at 70% plus year over year. Based on the growth of AI, that expansion is not over. It is forecast that at least $1 trillion will be spent on AI infrastructures over the next five years. Much of this money will come from large tech companies like Microsoft. The electricity needs will be extraordinary.
Huge Server Farms
The International Energy Agency (IEA) estimates that global data center electricity demand may rise above 1,000 TWh per year, which is the equivalent of Japan’s or Germany’s electricity needs. This amount of power simply isn’t available and may not be.
Electricity continues to be fueled worldwide by coal, followed by natural gas. While there is hope that more of this will be driven over time by wind, solar, and nuclear, they remain an extremely small percentage of the mix today.
EPA Estimates
According to the EPA, “Electric power includes emissions from electricity production used by other end-use sectors (e.g., industry). In 2022, 60% of our electricity comes from burning fossil fuels, mostly coal and natural gas.” The current political situation in the US may cause green energy growth to lag as fossil fuels gain a new foothold.
No matter what the sources, the world will probably be low on electricity generation by the end of the decade.
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