The data center industry is booming. This increase is mainly due to the needs of Tech giants to meet the growing demand for artificial intelligence (AI). Growth that brings major environmental challenges.
According to a Morgan Stanley report, carbon dioxide (CO) emissions2e) data centers are expected to reach 2.5 billion metric tons by 2030, accounting for nearly 40% of annual U.S. emissions.
Another report (Gartner) published last November highlights that 40% of existing AI data centers could face operational constraints due to energy shortages.
The growing demand for AI and generative AI (GenAI) technologies is putting unprecedented pressure on data center energy resources.
By 2027, energy consumption is expected to reach 500 terawatt hours (TWh) per year, more than double the 2023 level. This explosive growth could lead to energy shortages and significant increases in operational costs for organizations deploying large language models (LLM).
Small nuclear reactors
In its report, Gartner recommends that companies negotiate long-term contracts with data center providers to lock in favorable electricity rates and mitigate price volatility.
Businesses are also encouraged to reassess their long-term plans to account for rising electricity costs and outage risks.
Renewable sources like wind and solar require additional systems to be reliable, making 24/7 power supply difficult. However, emerging technologies like sodium-ion batteries and Small nuclear reactors could offer cleaner and more consistent solutions in the future.
However, to be somewhat positive, data center growth represents an opportunity to drive investment in clean energy and decarbonization technologies.
Large technology companies are adopting various strategies to reduce their emissions. Google invests in renewable energy projects and develops battery storage technologies.
Wasted cloud spending
Microsoft aims to be carbon neutral by 2030 by using renewable energy and improving energy efficiency. Amazon plans to power its data centers entirely with renewable energy by 2025.
Despite these efforts, concerns remain about cloud providers’ actual commitment to decarbonization. In Ireland, for example, the construction of a new Google data center was blocked due to concerns about energy consumption.
Additionally, a Stacklet survey reveals that 78% of businesses estimate that 21-50% of their cloud spending is wasted each year, representing considerable financial losses.
Ultimately, the responsibility lies with everyone, including end users. For example, answering 20 to 50 questions with ChatGPT consumes around 500 ml of water, the equivalent of a small bottle!
