Big Tech companies are striking major power-generation deals as they attempt to balance AI energy needs and sustainability goals.
) is ubiquitous in today’s world, not just for being one of the biggest and most established online marketplaces but also for being among the largest data center providers.
The strategy is a symptom of an energy reckoning that has been building as AI has been creeping into consumers' daily lives — powering everything from internet searches to smart devices and cars.) continue to enhance AI capabilities with new products and services. Each AI task requires vast computational power, which translates into substantial electricity consumption through energy-hungry data centers.
For example, when a user asks AI models like ChatGPT a question, it involves sending a request to a data center, where powerful processors generate a response. This process, though quick, uses approximately 10 times more energy than a typical Google search. The largest consumers of this energy are Big Tech companies, known as hyperscalers, that have the capacity to scale AI efforts rapidly with their cloud services. Microsoft Luccioni pointed out that grid operators are extending the use of coal-powered plants to meet the rising energy needs, even as renewable energy generation expands.have acknowledged in their sustainability reports that AI has hindered their ability to meet climate targets.
Energy Consumption Nuclear-Powered Amazon Nuclear Power Plants Talen Energy Getty Images Renewable Energy Sources Sasha Luccioni Nathan Howard Energy
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