AI at the carbon crossroads

AI at the Carbon Crossroads

3 Sustainable Principles for AI-Ready Infrastructure

While more traditional cloud services continue to grow fast, higher density configurations are becoming more common as GPU-driven High Performance Compute (HPC) and Machine Learning (ML) come online. The sharpest growth and highest densities of all are coming from Deep Learning and Generative AI. According to the International Energy Authority (IEA), in 2023, NVIDIA shipped 100,000 units consuming an average of 7.3 TWh of electricity per year. By 2026, the AI industry is forecasted to grow to consume at least ten times this demand. Spending in the global AI infrastructure market – including data centers, networks, and other hardware supporting AI applications – is expected to reach $423 billion by 2029, growing at a compound annual rate of 44% for the next six years.

The growth and power demands of AI put the data center industry at a carbon crossroads, where high-density power requirements have the potential to clash with emission reduction targets, and where digital transformation threatens to derail the energy transition.

Sustainability targets loom, and new regulations have been launched, making GHG reporting obligatory. These include the Corporate Sustainability Reporting Directive (CSRD), which covers over 75% of EU company turnover, as well as the EU Energy Efficiency Directive and evolving DOE and SEC requirements in the US.

Even more importantly, data center users want to report their emissions performance, with more than 23,000 companies - representing $67 trillion in market capitalization – disclosing their emissions through CDP. According to Accenture, 37% of companies have now set net zero targets.

At the same time, Rystad Energy research estimates that over $3 trillion in investment is required before 2030 to update outdated and inadequate power grids worldwide if we are to limit global warming to 1.8 degrees Celsius above pre-industrial levels. These constrained power grids cannot support the shift to AI at the same time as wholesale electrification takes place.

Bearing these factors in mind, this e-book outlines three critical sustainable principles that data center users of all sizes should consider when planning their HPC or AI infrastructure needs:

• Redefine renewables
• Transform operational efficiency
• Tackle embodied impact