Technology companies are facing a dilemma as they pursue the development of advanced AI models. These models, such as ChatGPT and Google’s Gemini, require large amounts of energy for processing and cooling in data centers. Estimates indicate that by the end of the decade, the energy demand for these models could make up nine percent of all US electricity, up from around four percent today. The increased energy demand is partially attributed to the generative AI arms race among Big Tech companies. However, renewable energy sources like wind and solar are not currently able to meet this demand, leading to a potential reliance on fossil fuel sources that may undermine net zero and carbon neutral pledges.
Tech companies are working to find more renewable energy sources in order to meet their climate goals. Some are exploring more advanced forms of geothermal power, such as the geothermal energy startup Sage Geosystems. These efforts aim to provide clean energy to meet the staggering energy demands of tech companies. There is optimism within the geothermal industry regarding the ability of startups like Sage to help meet these new energy demands. However, it is still uncertain whether this developing industry can scale operations and reduce prices quickly enough to be viable in a rapid-fire AI environment. Modern geothermal energy, which goes beyond traditional uses in places with volcanic activity, involves creating fractures in hot solid rocks underground and using water to generate electricity in a turbine. The CEO of Sage Geosystems expects that their new plant powering Meta’s data centers could require around 100 acres of space and a staff of 40-50 to operate. This geothermal energy will be added to Meta’s renewable offsets, which they need to increase as their demand for electricity grows.
Geothermal energy could potentially become a larger part of the overall US energy supply, with the Department of Energy predicting a significant capacity increase by 2050. The industry is also gaining attention from tech companies and federal sources, with new plants in development and discussions with the Department of Defense. The rise in energy demands from powerful generative AI models is posing a threat to tech companies’ climate goals. The energy required for these AI models could come from non-renewable sources and may exacerbate environmental issues. As a result, there is an urgent need to find alternative energy sources to meet this demand. The potential for modern geothermal to fill this need is still uncertain, as it will require patience and persistence to scale operations.
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