Artificial intelligence is a power-hungry business. The AI servers Nvidia shipped just last year are estimated to have consumed roughly the same amount of electricity as 20 million U.S. homes, according to Bank of America. Today, data centers use between 1% and 2% of the electricity produced worldwide, according to BofA analyst Andrew Obin. However, he expects their power consumption will grow at an 11% compound annual growth rate through 2030 — an estimate that could be a bit conservative given the energy-intensive nature of AI chips. “If AI hadn’t come along, data centers would not be booming the way they are today — and they wouldn’t be using as much power. But they absolutely represent another source of demand and stress on the grid while we’re electrifying,” JPMorgan analyst Stephen Tusa said. This is a big opportunity for companies such as Eaton , General Electric , Hubbell Power Systems and Vertiv that specialize in catering to the needs of data centers and servicing the power grids that supply them. The physical infrastructure needed for the data center market is estimated to have been worth $37 billion at the end of 2023, but upgrades should bring in $4 billion of new revenue through 2025, Obin said. That market includes power management, thermal management, IT and edge equipment as well as services and software. “AI and electrification trends suggests demand for electricity — and key electrical equipment — is set to accelerate through the end of this decade,” Obin wrote in a Jan. 16 note. In fact, “data centers are taking a disproportionate amount of incremental capacity being added by electrical equipment manufacturers.” Much of the energy data centers consume is used to train AI models as well as to run them. U.S. data centers consume 10 to 50 times the energy per floor space of a typical commercial office building, and these spaces comprise about 2% of total domestic electricity use, according to the U.S. Department of Energy. But there are…
2024-01-23 11:37:00
All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator
Read more from original source here…
2 min read
2 min read
2 min read
2 min read
