AI is going to use way more energy than the cloud. 'It's staggering.'

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

Finance Finance Headlines News

The cloud uses massive amounts of energy. Generative AI will be way worse. A Microsoft data center veteran warns big changes are coming.

For instance, the power consumption of Nvidia's new GH200 server cluster is about two to four times more than a regular cluster of the same physical size, he estimated. Tom Keane, who oversaw Microsoft's cloud data centers for about two decades, recently warned about this.

The surge in AI demand, and the changes coming, present an opportunity for investors like Ganzi."Massive would be the understatement," he said. One key difference between traditional data centers and new AI facilities is how power is consumed. Regular cloud data centers are designed to handle variable demand. When everyone in the US is working and streaming videos, these facilities are busy. When night falls and most people sleep, usage falls. In contrast, AI data centers run constantly, especially when training big models. That requires increased access to power and the ability to sustain it consistently.

Proximity to smaller urban areas means better power density, which means a faster connection. Smaller cities also mean lower power costs for the data center operator. Ideal locations for future data centers will be in low-cost areas, according Cowen.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Amazon created a new generative AI org, email showsAmazon Web Services has launched a new AI team as it scrambles to compete with rivals like OpenAI, leaked email and transcript shows
Source: BusinessInsider - 🏆 729. / 51 Read more »