Schneider Electric: How Big is AI's Impact on Energy?
Artificial intelligence (AI) possesses immense capability to improve the world, but the data centres behind it require vast amounts of power.
At the International Energy Agency (IEA) Global Conference on Energy and AI, Schneider Electric unveiled research projecting AI's future impact on energy use, paving the way for sustainable adaptation.
“The release of our reports comes at a crucial time, as the IEA conference highlights the transformative power of AI in the energy sector,” says Vincent Petit, Climate and Energy Transition Research SVP at Schneider Electric.
“As a company and as researchers, we are committed to keep shaping the future of energy and climate solutions.”
Understanding AI's electricity dynamics
The Schneider Electric Sustainability Research Institute report, titled "Artificial Intelligence and Electricity: A System Dynamics Approach", explores potential future scenarios of AI's electricity demands.
Rémi Paccou, Director at Schneider's Institute, and Prof. Fons Wijnhoven of the University of Twente, created a system dynamics model to forecast diverse AI-related electricity consumption scenarios.
According to the research, decisions made today around AI infrastructure could significantly shape energy consumption paths beyond 2030.
However, lowering electricity usage through AI does not inherently align with sustainable and resilient growth.
If unchecked, AI development could disrupt existing systems, hinder decarbonisation efforts and lead to increased waste.
Schneider’s study warns of possible energy demands and infrastructural mismatches causing localized shortages, potentially triggering wider global issues.
Jason Oxman, President and Chief Executive Officer of the Information Technology Industry Council (ITI), says: “The meteoric rise of artificial intelligence technologies has provided humanity with an incredibly potent tool that can tackle challenges we once thought unsolvable.
“The potential benefits of harnessing AI technology are hard to overstate. AI, like electricity or the automobile, has the capability to completely revolutionize the way we live our lives.
“But like with any other technology, there are challenges we must address to ensure that AI can be harnessed safely and efficiently.”
Building a roadmap for sustainable AI
Schneider Electric's report outlines nine strategic recommendations for achieving sustainable AI developments:
- Construct and enhance next-generation AI data centres with advanced cooling technologies, dense computing options and modern, efficient AI-specific hardware.
- Broaden integration of renewable energy sources and advance storage technologies by implementing intelligent energy management systems that tailor energy use to availability and need, and investing in technologies like solid-state batteries.
- Plan and execute enhancements to strategic grid capacity through collaborative efforts between energy suppliers, policymakers and AI firms.
- Optimise software efficiency and improve AI model performance through techniques such as model pruning, quantisation and employing lightweight architectures to improve AI efficiency.
- Quantify, evaluate and prioritise AI's sustainability impacts using evidence-based methodologies.
- Adopt circular economy principles for AI hardware and software, designing for durability, repairability, recyclability and software modularity and compatibility.
- Develop and implement Sustainable AI certification standards with clear and measurable performance criteria.
- Establish comprehensive governance frameworks for AI, potentially incorporating a risk-based classification system for applications.
- Boost AI competence and digital literacy by funding educational programs that incorporate sustainability into AI learning.
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