Data Center Operators and Cloud Providers Turn to Alternative Energy Sources

Data Center Operators

Data center operators as well as cloud providers are looking for alternative energy sources such as nuclear and flared gas because of strains on the nation’s electric grid and the AI boom. AI models such as those behind ChatGPT are driving the market for data centers. Generative AI models require more energy for their operation.

A majority of data centers operate with power sourced from the nation’s grid. So, they put a strain on the electric grid. According to the latest information available from experts, the AI Cloud is expected to consume 3.5% of the world’s electricity by 2030.

Tech giants turn to nontraditional energy sources

Google, Microsoft, and Amazon.com are exploring nontraditional energy sources like solar and wind to power their data centers. Businesses looking for sustainability can buy solar panels and wind power-related equipment at affordable rates from Procurenet. Newer players and tech giants are scouting for a variety of energy sources like nuclear, geothermal, and flared gas.

Exafunction, which is engaged in the manufacture of Codeium generative AI-based coding assistants, has sought the help of Crusoe Energy Systems, an energy startup, to train its language models. Crusoe Energy Systems offers better prices, whereas Nvidia offers advanced AI chips at reasonable prices.

Crusoe Energy Systems converts flared gas into electricity

Crusoe, which is located in Denver, converts the burned natural gas, aka flared gas, from oil production processes into electricity. Flared gas is used to power data centers. It also unveiled a cloud service that focuses on AI in 2022. AI requires more energy. The company also caters to the needs of startups, which focus on AI.

Crusoe manages more than 100 small modular data centers, which are constructed at the sites of oil wells located in states like Wyoming, Colorado, and North Dakota. The company procures gas at lower prices in these locations and gets access to it immediately. Oil manufacturers’ burn natural gas when they do not have the infrastructure to transport that gas to the market or facilities to store it. Oil producers usually burn gas, which is a cheaper and easier way to handle natural gas. Apart from flared gas, Crusoe also utilizes solar, geothermal, nuclear, and wind energy to operate its data centers.

AI startups need more power

AI startups usually require 5 to 25 MW of data center power. Crusoe expects to produce 200 MW of power by the end of 2023. If you want to train one AI model, such as ChatGPT, it requires 10 gigawatt hours, which can power 1,000 houses in the US a year.

Major cloud providers invest in alternative and renewable energy sources

Despite having the capability to generate several gigawatts of power, major cloud providers are investing in alternative energy sources and renewable energy sources to power their data centers. According to recent estimates, data centers consume up to 3% of electricity across the world.

The massive data centers of Amazon allow it to be more efficient and use resources prudently compared to privately operated and small data centers. Procurenet is the best online platform for your automation and IT technology products and solutions. All the products are genuine and reliable.