Climate Needs AI Data Centers To Slow
Over time, the AI data center may be the biggest threat to the climate, at least in the US. These consume vast amounts of electricity, which in turn requires massive amounts of energy. All of that has to come from a mix of solar, wind, nuclear, natural gas, hydro, and coal. The pace at which alternative energy is coming online means a return to coal if the growth of AI data centers continues at the current planned pace.
The estimate of money raised for data centers is $250 billion to $500 billion, spending on the source of the information. Indeed, Microsoft, Meta, Amazon, and OpenAI have over $10 billion in commitments.
AI Rush
There may be some good news. Several analysts covering the AI data business report that some companies, including Microsoft and AWS, have started to stop or slow the pace of opening data centers. There could be an emerging thought that AI financial returns will be lower in the future than projected.
CNBC says, “A UBS report from last week concluded that among all the possible explanations for data center cancellations, it was most likely that Microsoft had overcommitted amid the AI rush, and was now zeroing in on the projects that currently make the most sense.”
The number of data centers forecasted to run in a decade may be accurate. If the pace at which they are built slows, green electricity may catch up.
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