The tech sector's growing energy requirements, driven by artificial intelligence (AI) and machine learning (ML), are transforming the global energy landscape. ChatGPT's energy consumption is 2.9 watt-hours, significantly higher than the typical search's 0.3 watt-hour. The power demand of U.S. data centers is expected to increase from 147 terawatt-hours (TWh) in 2023 to over 600 TWh by 2030, accounting for 11.7% of the total U.S. power demand.
Technology companies are exploring various energy options, including partnerships with energy providers for dedicated energy supplies. Some, like XAI, are considering natural gas, while others are investing in renewable energy sources.
Microsoft is considering natural gas with carbon capture, contingent on its cost-effectiveness, despite its goal of being carbon-free by 2030. Google and Amazon are committed to nuclear energy for AI. Google has purchased 500 megawatts (MW) from Kairos Power SMRs, and Amazon has partnered with X-energy.
Tech companies are financing renewable energy projects, accounting for over two-thirds of all contracted renewable capacity between February 2022 and the 24th.
The future of energy for technology remains uncertain, but it will likely involve a mix of fossil fuels, renewable sources, and nuclear power.