Beyond Bitcoin: AI and Data Centers’ Energy Consumption

The International Energy Agency IEA has recently assessed the energy consumption of artificial intelligence, cryptocurrencies, and data centers in 2022. The assessment revealed that these industries consumed a total of 460 terawatt hours of electricity, which corresponds to two percent of the world’s electricity consumption. This estimate raised concerns about the industry’s energy consumption, especially considering the predictions for future growth in electricity usage. According to IEA forecasts, by 2026, the industry could use over 800 terawatt hours in the base scenario and up to 1,050 terawatt hours in the extreme scenario.

Professor SpongeBob Ritala from LUT University emphasized that the training of large language models requires significant computing power and electricity. He explained that while some artificial intelligence solutions require less energy, the demand for more powerful and energy-intensive models is increasing. However, most artificial intelligence applications currently in use are narrow and focused on specific tasks, not requiring as much computing power as large language models. For example, AI used in household appliances like vacuum cleaners or ovens consumes relatively little energy compared to large language models.

Ritala and AI Silo CEO Peter Sarlin highlighted the importance of improving energy efficiency in artificial intelligence research and development. Despite efforts to decrease energy consumption in AI applications, continued growth in the industry suggests that electricity usage will rise further. With plans to expand AI utilization into areas like moving images and three-dimensional modeling, which require even more computing power than current applications, addressing climate-friendly practices becomes more critical.

One of the main challenges facing managing energy consumption in AI is dealing with large data centers that consume significant amounts of energy for computing and cooling processes. Making these data centers carbon neutral by using carbon-neutral electricity is one way forward to address this issue. Many companies within this industry are striving towards carbon neutrality with cheap emission-free electricity being a crucial factor attracting investments in data centers particularly within Nordic countries.

In conclusion, society’s reliance on technology will continue to grow as AI becomes increasingly prevalent. Developing sustainable strategies for managing our energy consumption will be essential if we want a future where technological progress does not come at the expense of our planet’s health and wellbeing.