Cream Consulting
Cream is a Business and Technology consulting firm
Technology leaders warn that power shortages are discouraging the growth of AI.
Companies such as Amazon, Microsoft and Google are investing billions in computing infrastructure for AI but capacity constraints at data centres such as Northern Virginia are driving the search for new locations around the world.
These constraints also raise environmental concerns, urging a reform of electricity grids to favour renewable energy. Data centre costs are expected to exceed $225 billion in 2024, and electricity consumption is expected to double by 2026, requiring energy regulation and efficiency improvements.
Even before the AI boom, markets struggled to meet the demand due to regulatory delays in approving renewable energies projects. As a result, some jurisdictions restricted the development of new data centres.
What steps do you think tech companies should take to address the increasing pressure on electricity supply caused by the growth of AI?