The demand for artificial intelligence continues to grow, and technology companies are increasingly interested in nuclear energy and geothermal energy.
As the commercialization of AI ramps up, recent media reports highlight a surge in power demand from the leading cloud computing firms: Amazon, Google, and Microsoft. In a bid to meet carbon emission reduction targets, these companies are pivoting towards clean energy sources, including nuclear and geothermal energy, to explore fresh avenues.
According to the International Energy Agency, data centers and their associated networks presently consume approximately 2%-3% of the global electricity supply. Forecasts from the Boston Consulting Group suggest that this demand could triple by 2030, propelled by the substantial computational needs of generative AI.
While the trio has previously invested in numerous solar and wind projects to power their expanding data centers, the intermittent nature of these energy sources poses challenges in ensuring a consistent power supply round the clock. Consequently, they are actively seeking out new renewable, zero-carbon energy alternatives.
Last week, Microsoft and Google announced a partnership to purchase electricity generated from geothermal energy, hydrogen, battery storage and nuclear energy. They are also working with steelmaker Nucor to identify projects they can purchase once they are up and running.
Geothermal energy currently accounts for only a small part of the U.S. electricity mix, but is expected to provide 120 gigawatts of electricity generation by 2050. Driven by the need for artificial intelligence, identifying geothermal resources and improving exploration drilling will become more efficient.
Nuclear fusion is considered a safer and cleaner technology than traditional nuclear power. Google has invested in nuclear fusion startup TAE Technologies, and Microsoft also plans to purchase electricity produced by nuclear fusion startup Helion Energy in 2028.
Maud Texler, head of clean energy and decarbonization at Google, noted:
Scaling up advanced clean technologies requires big investments, but novelty and risk often make it difficult for early-stage projects to secure the financing they need. Bringing together demand from multiple large clean energy buyers can help create the investment and commercial structures needed to bring these projects to the next level. market.
In addition, some analysts pointed out that in order to support the surge in power demand, technology giants will eventually have to rely more on non-renewable energy sources such as natural gas and coal for power generation.
Post time: Apr-03-2024
