Gartner says AI's Hunger for Power Strains Data Centres
Electrifying trends driven by AI and Gen AI are causing a spike in power consumption in the tech world.
With data centres under increasing pressure to manage this surge, the energy stakes are high.
Industry experts from Gartner say that data centre energy demands linked specifically to Gen AI are projected to grow by a staggering 160% in the next couple of years.
“The explosive growth of new hyperscale data centres to implement Gen AI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough.”
By 2027, Gartner foresees that 40% of AI-focused data centres may struggle with insufficient power supplies to manage their operations effectively.
The core of the issue? AI's intense energy appetite.
It's anticipated that the growing power requirement will not just stress the grid but continue to escalate over time, hinting at a future where electricity might become a luxury for these data giants.
Rising to the AI challenge
The data centres, which Gartner estimates to consume about 1-1.5% of global electricity as of 2022, are expected to see their electricity demands double by 2026.
The escalated need for power primarily stems from the need to host and run large-scale AI optimisations that require hefty amounts of electricity. According to Gartner, the power required for data centres to run incremental AI-optimised servers will reach 500TWh per year in 2027, 2.6 times the level in 2023.
“The explosive growth of new hyperscale data centres to implement Gen AI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough,” says Bob Johnson, VP Analyst at Gartner.
“In turn, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centres for GenAI and other uses from 2026.”
“New larger data centres are being planned to handle the huge amounts of data needed to train and implement the rapidly expanding large language models (LLMs) that underpin GenAI applications.
“However, short-term power shortages are likely to continue for years as new power transmission, distribution and generation capacity could take years to come online and won’t alleviate current problems.”
Addressing the immersive pull of AI on resources also brings to light the potential environmental impact.
As demand escalates, CO₂ emissions are set to rise, pushing data centres to reassess how they can align with sustainability objectives without compromising on performance and growth.
Planning for Sustainability Amid Growth
In the face of these challenges, Gartner advises organisations to earnestly assess the risks tied to potential power shortages and how these might impact their services and product offerings.
Meanwhile, it seems inevitable that power costs will swell, influencing the operational expenses of running increasingly sophisticated AI models and their associated data centres.
“Significant power users are working with major producers to secure long-term guaranteed sources of power independent of other grid demands,” Bob explains.
“In the meantime, the cost of power to operate data centres will increase significantly as operators use economic leverage to secure needed power. These costs will be passed on to AI/Gen AI product and service providers as well.”
Rewiring future strategies must include durable contingency plans centred on renewable energy sources.
While sources like wind and solar offer some relief, the continuous nature of data centre operations demands more reliable and constant power generation, achievable only through means such as hydroelectric, fossil fuel or nuclear power.
By proactively engaging in these discussions and planning phases, data centres not only ensure they meet the rising demands but also lead the way in demonstrating how technological innovations can be balanced with ecological and corporate responsibility.
Finally, adding another layer to the challenge, Gartner's research suggests that escalating demands may compel energy providers to maintain fossil fuel plants beyond their planned retirement, posing another hurdle for data centres aiming to align with zero-carbon objectives.
As AI continues to reshape our technological landscape, the dialogue surrounding its energy consumption is becoming more critical. With careful planning, robust management and a commitment to sustainable innovation, the future of data centres looks both energetic and green.
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