I was looking forward to writing this article. In recent years, there has been a growing discussion about energy consumption in the data center industry. But over the past year, there have been significant changes in technology that have increased the urgency of the conversation around renewable and clean energy.
Let's start with the thesis statement: The pace of our technological evolution is rapidly becoming unsustainable.
Consider this statistic from research firm Omdia. Omdia estimates that in the second quarter of 2023, Nvidia shipped more than 900 tons (1.8 million pounds) of his H100 computing GPUs for artificial intelligence (AI) and high performance computing (HPC) use cases. doing. exactly. Currently, GPU shipments are measured by weight rather than units sold. As an aside, at a recent conference Chris Crosby, CEO of Compass Data Centers, did some behind-the-scenes math on this. Bringing all these GPUs online at once consumes over 30 GW of power.
How do we accommodate this much energy usage? Which markets can we say are coming back and delivering so much clean energy for AI use cases right now? The company said it will need to ramp up coal-fired power plants to support these new use cases. It's a little ridiculous that we have to rely on fossil fuels to power the world's most advanced technology.
Before we go any further, I don't want this to be an article about generative AI. So let's explain a few things. We know this technology is useless. What we are currently experiencing is not so much a change in technology as a change in human nature. The way we interact with data has completely changed. For the first time in human history, we can now query datasets And then comes the “conscious” answer. Even if you've never used ChatGPT, if you've only used Google or Bing in the past two months, you're a generative AI user. This evolution has happened so rapidly over the past year.
That aside, let's talk about the 500-pound GPT-generated gorilla in the room. So how do you power all these AI, density-requiring ecosystems? In the 2024 AFCOM State of the Data Center Report, most respondents (53%) believe new AI workloads (generative AI) will increase capacity requirements for the colocation industry. As a result, power requirements also change.
The amount of energy consumed by generative AI can be quite large. One Google search can power a 100-watt light bulb for about 11 seconds. Instances like GPT are 600-800 times more powerful than a single Google search.
Switching to a new power source: nuclear power
As quickly as generative AI has taken over the market, a new debate around power is emerging, but one that has been around for quite some time. in particular, nuclear energy. “We envision a world where energy is unlimited,” said Brett Kugelmas, CEO of LastEnergy, a developer of small modular reactors (SMRs) for private companies, including data centers. “We want people to live a lifestyle full of energy. To achieve this, energy production needs to be decoupled from environmental impact, and therefore clean energy needs to be abundant and cheap. ”
I discussed this topic with Brett.And he raised some key points about what the nuclear sector needs to do to cope with the rapidly increasing energy demand from data centres. Starting with technology, you must always keep a focus on deliverability. There are many new reactor designs out there, all of which are attractive from an engineering perspective. However, the winning design leverages proven technology to serve this market and achieve commercial success. Last Energy uses a proven light water reactor design that has been modernized for scale. Productizing designs and right-sizing them for commercial applications such as data centers allows for faster, more cost-effective service and minimizes funding and project implementation risks. . Last Energy SMRs are up to 95% pre-assembled and delivered by truck. assembled on site. Each unit is a 20MW SMR, Rather than building (and licensing) custom plant designs, you can meet demand by installing as much as your customers need. The scheme is gaining momentum and the company has signed contracts for several PWR-20 power plants.
According to Kugelmass, nuclear power is not only the best way forward for this sector, it may be the only way. “The data center sector is an ideal application for on-site nuclear power generation. In an industry that is growing as rapidly as development schedules and supply chains allow, power supply constraints are becoming increasingly acute. We're working on sourcing free power, and we need baseload power that was traditionally provided by gas or coal power plants. Nuclear power is the answer, and the industry quickly realized this.”
Last Energy is not alone in its push to further support nuclear power for our industry. The Nuclear Regulation Authority has already approved another small modular reactor US (SMR) Design: NuScale's advanced “light water” SMR. Generates over 400MWe.
In October 2023, hosting provider Standard Power uses NuScale's SMR to build Two nuclear power plants are being built in Ohio and Pennsylvania and will provide nearly 2 GW of power to nearby data centers by 2029. And looking at the Northern Virginia market, in April 2023, real estate and project development company Green Energy Partners. purchased 641 acres for the project including the use of 4 to 6 SMRs It will power 20 to 30 data centers, generate hydrogen fuel and provide backup power to Virginia's power grid.
And the latest trends are already seeing data center operators paying millions of dollars to gain access to nuclear power.Equinix just made $25 million prepayment Procure up to 500MW of nuclear energy to nuclear reactor company Oklo.
growing interest
There is growing interest in nuclear power systems in the data center field. According to AFCOM's State of the Data Center report, between this year and last, more than twice as many respondents said they would use or at least consider nuclear energy, with nearly a quarter of respondents (21%; (up from 10% last year).
At this year's AFCOM Data Center World event, Dr. Leanne Berlan, currently Deputy Director for Nuclear Technology and Strategy in the White House Office of Science and Technology Policy (OSTP), explored the changing dynamics of clean energy use. and policies that will reshape our world.
In his keynote address, Dr. Berlan detailed the important role of nuclear technology in strengthening the energy grid, providing a stable and efficient power source that complements intermittent renewable energy sources such as solar and wind. His highlight was a discussion on the intersection of nuclear energy and digital infrastructure.
“Just last October, the administration issued a landmark executive order to ensure America leads in innovation and competition, capturing the promise of artificial intelligence, and managing risk.” Dr. Berlan said.
“In fact, the AI-related job market is growing rapidly, currently accounting for 2% of all jobs added in the United States. All of these technological advancements are placing additional strain on power generation infrastructure, and and could have a dramatic impact on the power sector.
Dr Berlan added: “According to our best estimates, data centers currently consume approximately 1% to 2% of annual electricity consumption in the United States, and the broader IT sector consumes approximately 5% of total electricity consumption in the United States. In computing hotspots such as Atlanta, Northern Virginia, Phoenix, and parts of Texas and California, data centers account for a much higher share of the local load and have a larger impact on the power grids and power companies that supply them. Estimates in many countries suggest that the load on data centers could double by 2030.
Regarding new applications around generative AI and data, Dr. Berlan took a closer look at nuclear energy and how it could impact digital infrastructure. “AI is a key driver of future growth, accounting for approximately 40% of data center loads. There are obviously uncertainties in the predictions, but we know that combining a data center with a nuclear reactor will provide high quality and high income. It's a great idea that will continue to work for decades.”
For those in the energy and digital infrastructure space, these conversations won't happen soon enough.
Andrew Bockman, nonresident senior fellow at the Global Energy Center and senior grid strategist and infrastructure advocate at the Idaho National Laboratory (INL), says it's a “chicken-or-egg question. It's a question of what comes first.” “We are halfway through 2024 and entering an era of what some are calling the ‘electrification challenge’. It consists of a creaky old power grid that is about to be asked to support the motherload of workloads.”
However, Bockman points out that this electric modernization will not be easy. “And what makes things even more difficult is that we have to do this while not adding any more carbon dioxide or methane to the atmosphere,” he says.
He also added some good news. “The answer may lie in the realm of physics that we tapped into in the middle of the last century. And despite facing many challenges in terms of public awareness and cost, One thing I've always said is that if climate concerns overshadow concerns about nuclear energy, everyone will want nuclear power. [an SMR or microreactor]. ”
To drive home the point, Bockman provided several examples of how these nuclear resources impact current AI power constraints. “If they get NRC approval and can be manufactured at scale today, especially to support the GenAI boom, you will see them flying off the shelves. Unfortunately, there will be some lag time. But people at my national lab in Idaho, in industry, and elsewhere are working around the clock to bring new designs to fruition as quickly and safely as possible.”
Final Thoughts – Bill Clayman
I'm really excited about these latest developments. New programs and government initiatives support SMR and advanced nuclear systems. These programs are at the cutting edge of nuclear technology, providing safer, more flexible and cost-effective solutions for modern energy needs.
As much as I would like to go into more detail on this topic, there is only so much I can fit into one article. However, I would like to briefly touch on safety. When I spoke to Brett from Last Energy, he made it clear: “Water-based reactors, even if they are old, don't have the inherent risk characteristics that people think.” Additionally, modern designs make nuclear technology much safer than ever before. became.
Finally, to power AI, you need to get creative. We're asking data center leaders to deploy physical infrastructure that consumes significantly more energy than it did just a year or two ago. The simple reality is that we need to look to new, stable, and clean energy sources that can supplement intermittent renewable energy. With the rise of AI, we believe that new and innovative power solutions that support modern digital infrastructure will also rapidly emerge.