Feeding the Machine: A Growing Crisis for Energy Resources

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Mony Aramalla investigates the barriers to the development of Artificial Intelligence.

Nowadays, machines are evolving faster than humans. Every day we are hearing about rapid acceleration in artificial intelligence (AI) and advanced technologies that shape the world we live in. Industries, economies, and ordinary people are becoming more dependent on these machines that are only becoming smarter and smarter. By some estimates, nearly 77% of devices today use AI technology in one form or another. This development has led to a rise in the demand for AI capabilities, cutting-edge computing power, and microchips. Given the magnitude of financial investment into AI, this growth may be unstoppable. The world is hungry for new computing capabilities.

Companies and businesses are racing to see how much further they can push AI until it reaches its full potential. One of the most telling indicators of this trend is the increase in data centre power demand. Data centres - the spines of our digital world - are rapidly expanding to keep up with the growing volume of data in AI-driven tasks. Training an AI model takes approximately ten times more power than normal data sets. According to a study done at the University of California in 2021, global data centre power demand was estimated at around 205 terawatt hours. For reference, Ireland’s total annual electricity demand is approximately 35 terawatt hours. This figure is projected to double by 2030 as a result of growing machine learning workloads.

The consumption by data centres has increased by 31% since 2021, and has increased by 400% over the last decade.

Another pressing problem is the demand for resources. Increasing computing loads and data storage requires ever-more energy. In Ireland itself, data centres compete with households and businesses for power, increasing household electricity prices. The consumption by data centres has increased by 31% since 2021, and has increased by 400% over the last decade. The strain on the energy grid is so significant that the Irish government had to impose restrictions on the data centres to prevent blackouts. It is incredibly important to find solutions that can lead to a progression in technical development, while not jeopardising the well-being & comfort of the people. 

We are lucky to have the energy resources in Ireland that can meet demands of data centres, but what about places that can’t?

Singapore is known as a country where technological development knows no bounds. Their highly skilled workforce, advanced research facilities, and strong technical property protection systems can’t successfully prevent the energy crisis that the country would face if the city-state continues to invest heavily in data centres. Their limited land and natural resources have led to such a strain on electricity demand that the Singaporean government temporarily halted all construction of data centres. 

Data centre crises are widespread. Scandinavia has the ideal cold climate for natural data centre cooling. Even there, expanding the data centre industry is difficult. If they expect to uphold their commitments to reduce carbon emissions and become carbon neutral before 2050, they may have to compromise on the development of data centres.

This question of rising demand for data centres and the desire to keep the carbon emissions low puts enormous pressure on world leaders to push for the development of renewable and sustainable energy resources. Globally, data centres consume 1-2% of the world’s electricity. They also require substantial amounts of water for cooling purposes. A typical data centre uses 300,000 gallons of water per day. Their backup power systems usually rely on natural gas, a potent greenhouse gas. The demand for AI and data centres is immediate, and the need for renewable energy sources is greater than ever. 

The global tech crunch has brought about rapid developments in some technology. The demand for semiconductors and other critical electrical components has outstripped supply. Semiconductors —considered the “brains” of modern electronics— are now in scarce supply. These tiny chips are essential for a wide array of electronic devices, from smartphones and laptops to cars and household appliances. Modern life depends on these components.

The COVID-19 pandemic impacted supply chains as factories shut down and logistics were disrupted. The companies producing these essential components were forced to delay production, and some backlogs have not yet been fully resolved, two years after the pandemic. 

The CHIPS and Science Act, signed into law in 2022, allocates $52 billion to incentivise the production of chips within the US.

In response to the semiconductor shortage, the US has taken steps to strengthen its domestic chip manufacturing capabilities. The CHIPS and Science Act, signed into law in 2022, allocates $52 billion to incentivise the production of chips within the US. This legislation attempts to reduce reliance on foreign-made semiconductors, particularly from East Asia.

East Asian companies, especially those in Taiwan and China, are considered the leaders of electronic production. However, the growing geopolitical tensions between Taiwan and China cause widespread vulnerabilities in the production of semiconductors; with Taiwan containing the largest semiconductor company in the world, the potential for conflict over Taiwan has raised alarms worldwide. Any disruption to its semiconductor industry would have severe consequences for the global electronic sector, at a moment when demand is surging. 

These tensions are not the only issues threatening the industry either. The consumption of energy and water in data centre facilities and their rapidly increasing carbon footprints has become a hot topic in the media, with calls for the industry to adopt more sustainable practices. Amid mounting social backlash, companies such as Google, Microsoft and Facebook have started to commit to using 100% renewable energy sources in their data centres. More governments and environmental organisations are pushing for stricter regulations to ensure that the growth of AI doesn’t come at the expense of the planet.

The technology industry has a responsibility to balance innovation with the sustainability of the resources on our planet. With artificial intelligence slowly integrating into our lives, we have a serious role to play in the development by ensuring that we support sustainable practices while enjoying the benefits of intelligent technology.