Solving AI’s Energy Dilemma

Can tech companies pursue the growth opportunity of generative artificial intelligence and still meet their climate goals?

Key Takeaways

  • Electricity consumed by data centers is projected to grow 10% to 20% a year by 2030. 
  • That’s the same deadline that some of the biggest data-center companies have set to meet their goal of net-zero carbon emissions. 
  • Chipmakers including Infineon and Silergy play a crucial role in helping data centers consume as little energy as possible.  

For data-center operators such as Microsoft and Amazon, the energy intensity of generative artificial intelligence (AI) is putting their growth plans and climate goals in conflict with one another. Fixing this dilemma requires the participation of every business along the AI supply chain, from the power generators to the companies building more energy-efficient chips.

Contributors

 

Igor Tishin, PhD, Analyst, and Michael Purtill, CFA, Analyst, contributed research and viewpoints to this piece.

 

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