AI and power requires give before take
www.fastcompany.com
When you ask ChatGPT a question, how does it come up with the answer? Most people dont give much thought to whats going on behind the screen or how graphics processing units (GPUs) make the AI magic happen in data centers across the country.GPUs are extraordinary, processing exceptionally large data sets and handling highly intensive computations involving billions of simultaneous calculations. Modern GPUs can train neural networks that enable AI breakthroughs that were once the subject of science fiction films. Thanks to GPUs, AI is being used to more accurately diagnose diseases, accelerate drug discovery, detect fraud, improve transportation efficiency, improve customer service, protect our national security interests, and provide personalized education experiences.Not surprisingly, the parallel processing architecture that makes GPUs excel at training AI requires an immense amount of energy. Thats why, according to Goldman Sachs Research, the power usage of data centers will grow by 160% by 2030.Our country is at a critical inflection point. The surge in energy required to power GPUs presents both a challenge and an opportunity. The United States power grid and service modelsbuilt in the pre-AI eraare not equipped to meet this demand. Today, data centers only account for about 2% of U.S. power consumption. But as AI models grow, data center development will outpace how quickly new electrical energy supply and transmission can be built without a shift in strategy.Seize the AI momentThis moment marks an opportunity for utility providers, communities, and the technology industry to come together to turn AI into a source of long-term economic prosperity and growthrather than let it create a chasm.GenAI has the potential to transform the U.S. economy, with some estimating it could increase U.S. labor productivity by 0.5 to 0.9% annually. Investing in our AI infrastructure will ensure American communities can attract and retain highly skilled talent, while accelerating scientific advancements. As global powers invest in AI, the right infrastructure is also necessary to ensure our governments and communities can protect critical infrastructure.So how do we seize this opportunity? We need to rethink our approach to building infrastructure and delivering power.Today, electric utilities have a duty to serve demand as it comes. In laymans terms, that means anyone can say, Im building something over here and I need more power for it, and the utility has to add that request into their queue for service. That can be unfair when some customers are asking for massive amounts of power, which could impact the entire community.In some cases, speculative developers demand power in the early stages of a project, prompting utilities to plan and invest in infrastructure for a data center project without backing that may never come to fruition. These speculative developers operate under the assumption that they can put the pieces of the puzzle in place to later sell to a data center developer or operator, a prospect which may never transpire. When those projects fall through, the local community is left holding the bag.Build a more sustainable approachIts possible for data centers to access the energy they need without driving up energy costs for everyone. To achieve this, the industry needs to work with utilities in a collaborative way to close the gap between supply and demand. Data centers can and should take on more of the risk (and costs) of building infrastructure and transmission, which will require regulatory support.Data center developers generally have easier access to capital, fewer restrictions when it comes to buying land and faster decision-making capabilities than regulated utilities. That means, were able to contribute financially to the development of transmission lines and substations. Complex regulatory processes often stand in the way of this today.Paving the path for microgrids, which enable data centers go off grid power and even return power to the grid during peak demand periods, can turn data centers into a grid resource rather than a drain on supply.The path forwardAI represents unprecedented potential for human advancement. Whats always been done wont work in the era of AI and electric-everything. American utilities are going to need to invest $50 billion to build new generation capacity for data centers alone by 2030. To achieve this, energy leaders are going to need to think out of the box and explore ways to closely collaborate with industry.Its the only path forward for long-term, resilient growth and a more equitable AI-powered future.Chris Crosby is CEO of Compass Datacenters.
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