$475 Billion AI Electricity Investment To Destroy Green Future
Analyses differ somewhat, but one thing is certain. Investments in AI data centers this year will be between $350 billion and $475 billion. Regardless of the number, these data centers will eat massive amounts of electricity. Renewables are not enough to satisfy demand. That means a certain return to coal and oil, which could last for decades. Attempts to fight global warming will hit a new, powerful headwind.
Among the worst side effects of the energy required by these large data centers is the amount of greenhouse gas emissions they create. This is a time when the 1.5 °C global warming bright line has already been breached. There was some hope that greenhouse gas emissions could be throttled back. AI, air conditioning in a warming world, and the rise of EVs alone will kill the chance.
Who Builds Data Centers?
The size of the data centers has become colossal. Elon Musk plans to build a 1 million square foot facility near Memphis. Microsoft, Alphabet, OpenIA, and Amazon plan larger facilities. And there are a dozen companies that want to compete with these leaders. Nvidia has become the world’s most valuable public corporation because it feeds them with service chips.
It would be a huge mistake to assume that AI might grow slowly and be brought online at a pace equivalent to the installation of renewable energy facilities. The fact of the matter is that new green facilities built by big tech companies cannot easily be attached to the largest grids immediately. So, legacy companies that rely on electricity will have to wait.
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