We're all charged up with ideas, but our power grid is running on empty.
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Due to the recent rapid development of artificial intelligence (AI) technology and the expansion of data centers by big tech companies, the demand for electricity is rapidly increasing. This was mentioned briefly when we talked about data centers before, but in reality, a significant amount of electricity is needed to train and operate artificial intelligence (AI).
As AI technology advances, power consumption is expected to increase exponentially. According to a report by Schneider Electric, the total power consumption related to AI workloads is expected to reach approximately 4.3 gigawatts (GW) by 2024. This is equivalent to the total power consumption of Denmark.
As AI models grow in size and complexity, the power consumption of hardware also increases. For example, NVIDIA’s latest AI chip H100 has a maximum power consumption (TDP) of 700W. This represents the maximum power that the chip can consume when operating at full performance. Actual power consumption will vary depending on the workload and may be lower on average. The next-generation model, B100, is expected to have a maximum power consumption of 1000W. These figures show that the power demand for AI computation is continuously increasing.
In addition to AI, the expansion of data centers and the expansion of electric vehicles are also expected to have a significant impact on the increase in electricity demand. These factors can work together to put additional burden on the power system. Data centers consume a lot of electricity to train AI models and provide services, and the expansion of electric vehicles adds new loads to homes and public power grids.
To cope with this situation, we need to establish and implement a long-term plan to expand the power infrastructure. A multifaceted approach is likely to be needed, including increasing power generation capacity, improving transmission and distribution networks, and introducing smart grids. The government and companies should work together to introduce efficient energy management systems and increase the proportion of renewable energy.
The development of AI technology and the increase in power demand are inevitable trends. Therefore, it is important to find a balance between technological innovation and power infrastructure expansion. It is time to seek sustainable development methods through cooperation between various stakeholders such as government, companies, and research institutes. As electric vehicles and AI become widespread, the demand for electricity in data centers will continue to increase. To handle this, a larger and more stable power supply network is needed.
Is that why? Recently, the so-called Magnificent 7, Microsoft (MS), Apple, Nvidia, Google, Amazon, Meta, and Tesla, are all investing in industries such as power generation and sustainable energy. In the future, this energy policy will be very important to them in the US presidential election. Green energy is sustainable but takes a long time, and fossil fuel/nuclear energy destroys the environment but provides electricity for sure. Where will those who need technological advancement and explosive growth right now bet?
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