Michele Braun, MBA PhD’s Post

More energy to the rescue ⚡! Executive order signed to ensure data center infrastructure and electricity for advanced AI operations 🤖. A recent report from the Department of Energy reveals a significant trend, that the electricity demand of U.S. data centers has tripled in the last decade. Looking ahead, projections suggest this demand could double or even triple by 2028 🫨 . This growth trajectory raises concerns as data centers may consume as much as 12% of the nation's electricity by that time.

Credit to Paul Haskell-Dowland and Bogdan Ghita July 29, 2024 Data centres are guzzling up too much electricity. Can we make them more efficient? https://lnkd.in/gnZZGx7a Our insatiable demand for digital content and services has been driving a rise in energy-hungry data centres. The International Energy Agency reports global data centre electricity consumption could double in a few short years, reaching 1,000 terawatt hours (TWh) by 2026. That’s roughly the same as generated by the whole of Japan per year. Some predictions estimate 8–10% of the planet’s electricity production will be needed to sustain the relentless growth in data centres. These figures are not uniformly distributed across the globe. In Ireland, where the sector is incentivised, data centres are predicted to exceed 30% of the country’s electricity demand within the next two years. Similar reports predict an increase in Australia from 5% to 8–15% of electricity by 2030. Why so much power? Of the power consumed by an entire data centre, computers may use around 40%. A similar proportion is typically dedicated to simply keeping the computers cool. This can be highly inefficient and costly. How can we make data centres more energy efficient? * Airflow: older data centres may still operate as a single large room (or multiple rooms) where the entire space is cooled. * Energy recovery: rather than forcibly cooling air (or liquids) using electricity, the warm exhaust from data centres can be repurposed. * Aquifer cooling: in locations with convenient access to underground water sources, groundwater cooling is a viable option to disperse excess heat. * Optimisation: although there are no reliable figures to quantify this type of waste, inefficiently configured software or hardware can use up some of the computing power consumed at a data centre. Optimising these can help reduce power consumption. * Physical location: by planning where a data centre is located, it is possible to significantly reduce cooling requirements. In northern Europe, the local climate can provide a natural cooling solution.

   It's up for debate whether enough capacity can be added to the grid to keep up with data center power demand    Some have argued a new compute paradigm is needed    But replacing entrenched systems will be wildly easier said than done In the U.S. alone could exceed 90 gigawatts (GW) – or nearly 10% of the total forecast 2029 load of 942 GW. Indeed, the report adds “improving energy efficiency may only lead to more computing demand, not reduced energy demand.” https://lnkd.in/e55Pmhqa

Interesting article follows. "...Are Data Centers to Blame..." or is increasing electric power demand at Data Centers a function of demand for digital information along with multiple other factors? Clearly it is far, far more than simply Data Centers... Data Centers, especially with AI impacts, are huge electric power consumers however it is critical to look past "...Blame..." and understand root causes to develop solutions. Electric power shortages are not only a function of increasing Data Center and Technology demand but also multiple other factors. Start with short-sighted government policies and mandates driving fossil fuel generation shutdowns while pushing increased intermittent renewables operating at a fraction of stated capacity. Add government policies for electrification of everything, interconnect permit que overloads, a historical 5% rate of completion for renewable projects, supply chain constraints, increased demand for qualified electrical workers while the pool of available talent declines. Make no mistake about it, we have a major problem, a worsening electric power shortage however it is far more than "...Data Centers are to Blame...." Practical solutions for this major problem include low carbon, local distributed generation, Firm-Hybrid microgrids, which can be quickly installed at sources of demand. Our Northeast - Western Energy Systems USA, LLC, an INNIO Jenbacher Business is in this critical race to solve for electric power shortages with key engineering and development partners. INNIO Group Aaron Tasin, EIT Eduardo Alcorta David Muller Amir Ali, MBA Chuck Hooper Fred Farrand Anthony Coleman Alexander Jannen Kimberly Stevens David Horowitz Joshua Griswold, PMP Adam Masten Noe Zepeda Thomas Seeber Joe Neal Joel Forty Jeff Starcher Jamie Smith Robin Starcher Peter Smith John Diamond Bill Leedecke Robert Autengruber Leon Jansen van Vuuren Dr. Olaf Berlien Martin Widner Martin Wendel Alex Ladner Mustafa Cakil Karl Höftberger Michael Brady Michelle Bloodworth Mark Cox #datacenter #power #innovation #technology #sustainability #energy

Quote: US data centre electricity consumption is expected to grow from 4 per cent to 6 per cent of total demand by 2026, while the AI industry is forecast to expand “exponentially” and consume at least 10 times its 2023 demand by 2026, said the IEA. Finding appropriate sites can be challenging, with power just one factor to consider among others such as the availability of large volumes of WATER to cool data centres.

Data centers are getting cozy with power plants, but the question is if it’s a good match. At a recent conference, FERC dug into the costs and reliability issues that come with setting up data centers right next to power sources. Big tech companies like Amazon and Google love the idea of having easy access to huge amounts of power, but it might mean higher bills for regular customers and could put more pressure on the grid. With AI taking off, the government is starting to see data centers as key players for national security and the economy. Still, there are big questions about who will cover the costs for needed transmission upgrades and what happens if the nearby power plant unexpectedly shuts down. It’s a tricky balance between keeping up with rising electricity demand and making sure the grid stays reliable. As data becomes more essential, the challenges of co-located data centers show how tech, energy infrastructure, and public utilities are all intertwined. The debate isn’t over, but one thing’s clear: finding solutions that work for both the tech industry and everyday people will be crucial for moving forward. #DataCenters #CoLocating #EnergyInfrastructure

I’m really excited to be working with teams to solve the challenges associated with the powerful and important ways we can now use AI. Thinking about power: how is your organisation considering power in its AI governance? Thinking about data centers: are the data centres and the customers of data centers using well governed data to end excessive power consumption? Data is not just the thing we can create with AI and computer infrastructure. It is an essential component of managing all of it for the common good.

If you missed the AFR AI summit, or dont have a subscription, here are a few snippets from Chanticleer columnist Anthony Macdonald’s panel. Data centres, or "Al factories", are only as good as their ability to source power. In Australia, data centres take that power from the grid. These data centres are already big. Five per cent is manageable. But data centres are getting bigger and the sector is booming; capacity, as measured by energy intensity, is due to more than double in the rest of the decade from 1050 megawatts to 2500 by 2030, or 13 per cent growth per year. Morgan Stanley's Australian equities analysts have mapped out the data centre boom - current data centres, developments, planned developments - and reckon Australia's power grid can cope for the rest of the decade. By 2030, when Australia's data centre capacity could hit the forecast 2500 megawatts, they reckon data centres could account for 8 per cent of the grid, up from the estimated 5 per cent today. After that, they say power could become a constraint. There are many moving parts. In Morgan Stanley's detailed analysis, utilities analyst Rob Koh did the energy piece, while technology analysts came up with the data centre industry forecasts. They reckon Australia is already a top-five market for data centres globally. Just the energy piece requires assumptions on data centre capacity, utilisation, and energy intensity to be matched with assumptions around our electricity generation market. It is not easy. Koh's numbers suggest Australia can handle the data centre Al boom in the near and medium terms. That's good news. However, the grid may need more help in the longer term. He makes no comment on the prospect of data centres co-located with nuclear power plants - something that is happening in parts of the US, for example, and for which some industry players want to see considered in Australia. He says renewable power would likely be "the least cost solution in terms of power development and power prices". Morgan Stanley's analysts come at the debate from the view of institutional investors, who they service and who are trying to make a buck from the Al boom - and data centres in particular. There are a handful of options in Australia; NextDC, Goodman Group, and Macquarie Technology Group. #ai #digitalinfrastructure #energytransition

Coal fired power plants have always been a backbone of power generation, but with the growing demand for increased power from new technology and data centers, these plants will have an increased focus even in the age of renewables. #reliableenergy

Fantastic dataviz showing the almost overnight surge in electricity demand from data centers is now outstripping the available power supply in many parts of the world. That dynamic is leading to years-long waits for businesses to access the grid as well as growing concerns of outages and price increases for those living in the densest data center markets. The dramatic increase in power demands from Silicon Valley’s growth-at-all-costs approach to AI also threatens to upend the energy transition plans of entire nations and the clean energy goals of trillion-dollar tech companies.