The irony would be delicious if it weren’t so impactful. According to experts, AI has the potential to be a tremendous positive in many fields. Yet, AI is an energy guzzler. How can we power this wondrous technology when the world is focused on reducing energy consumption due to environmental concerns? And there is the irony.
We recently wrote about the boom in data center construction, which experts predict will last for years. As noted in the earlier article, AI is a driving factor behind the need for more data centers and energy.
Perhaps, the great technology both taketh and giveth away in terms of energy.
A Real Guzzler
The CEO of Arn, a chip design company, said AI Could Consume 25% Of US Power By 2030. That’s up from 4% in 2024. Another irony is that the CEO said, ‘The More Information They Gather… The More Power It Takes.” Note that AI requires information to be effective.
AI’s great demand for energy is also fueling concerns over the grid. The subtitle of a recent Washington Post article says it all, “AI and the boom in clean-tech manufacturing are pushing America’s power grid to the brink. Utilities can’t keep up.”
The article also notes, “Vast swaths of the United States are at risk of running short of power…” They add that authorities are seeking credible plans to expand the grid and expand usage of the current grid. “The soaring demand is touching off a scramble to try to squeeze more juice out of an aging power grid …”
AI Can Help Save Energy
Reducing energy use and improving efficiency is another trick experts say AI can manage. “The big tech companies are also exploring ways AI can help make the grid operate more efficiently,” according to the Washington Post article cited above.
While AI will not lead to decarbonization, it has led to minimizing energy consumption. The key to doing so is using what is needed and not more. Constraining energy use to what is essential can make a meaningful dent in overall consumption.
The dent – a15 to 25% reduction in energy consumption over the next four years – according to Peter Herwick, CEO of Schneider Electric, as stated at a recent energy conference and reported in the Wall Street Journal (WSJ).
Consider these everyday situations that are regular occurrences in buildings that are clear targets for energy reduction.
- Internal offices lit up at night/weekends/holidays.
- The heat/air conditioner remains at the same temperature regardless of occupation level.
- A sprinkler system operates during a rainstorm.
- An elevator operates throughout the night.
How does it work? Equip buildings with smart devices and meters that gather information/data on the usage of energy-related activity. AI can analyze the data and “… spot where they [building owners] can make energy savings, identify faults or predict future maintenance needs, and set a building’s operating system based on inputs such as the weather forecast and the number of people on-site,” according to the WSJ.
While more and more new buildings are being designed and constructed with AI incorporated into their operating systems, existing buildings can be equipped to utilize the technology. Of course, installing the necessary systems comes with a cost. However, the WSJ notes that companies are quickly recouping the upfront costs. The article cites an example where the investment was recouped within two years due to a $1.5 million reduction in energy costs. Energy savings are realized by increasing efficiency and reducing consumption.
Opportunities to minimize energy use can also occur in industries beyond real estate. AI’s ability to analyze a data set to find energy savings is sure to help many industries. A 2017 McKinsey discussion paper suggested that AI could lead to energy savings of 15% in transport systems and 20% in utility networks.
Net Net?
Can the energy savings due to AI make the technology a net positive in terms of energy consumption? The answer to this question is not yet clear.
Is AI a short-term energy guzzler but a long-term saver? This is the title of a recent World Future Energy Summit article.
The article says, “While offering an invaluable chance to enhance the efficiency and resilience of grids across the world, there’s no getting away from the fact that AI carries a hefty electricity demand of its own.”
However, they add, “…there is plenty of confidence that AI’s positive contributions to the energy industry will quickly surpass its running costs in terms of emissions and energy consumption. Experts within the industry and outside observers agree that AI is poised to revolutionize energy systems’ predictive maintenance and system efficiency and potentially even drive greater international energy security while driving down emissions.”
The positive result is to be determined. The one certainty is that AI will continue to grow and impact more industries. The potential to save as much energy as it consumes or even be a net positive is exciting. This dream scenario would make the powerful technology even more exciting.