Big technology companies are investing in solutions ranging from carbon removal and small nuclear reactors, to natural gas plants, in a bid to manage the rising energy demands of AI. While renewable energy remains part of the mix, its limitations are prompting companies to pursue more controversial or unproven alternatives to keep up with AI infrastructure growth.
The rapid expansion of artificial intelligence is pushing power demands ever upwards. While companies have only recently started deploying Nvidia’s 120 kW-per-rack systems, the GPU maker is already planning for designs capable of reaching 600 kW per rack.
As reported by The Register, the increase in energy demand raises questions about how realistic tech giants’ environmental goals remain. Microsoft, for example, has vowed to be carbon negative by 2030, and Google is working toward net-zero emissions across its operations. Amazon has a longer timeline, aiming for net-zero by 2040.
However, emissions data shows that progress towards those goals is lagging. Microsoft has reported a 30% increase in COâ‚‚ emissions since 2020, while Amazon and Google saw emissions rise by 34.5% and 48%, respectively since 2019. While these companies don’t isolate their data centre emissions, the large-scale rollout of energy-intensive GPUs is likely to be the greatest contributor to the upward trend.
According to the International Energy Agency, data centres are among the fastest-growing sources of emissions but are expected to account for less than 1.5% of total energy sector emissions by 2035, or roughly 300 to 500 megatons. Nevertheless, the scale of tech companies’ infrastructure and their public climate commitments remain under scrutiny.
Carbon capture gains momentum
Companies are investing in carbon removal technologies, with Microsoft recently partnering with Terradot with the aim of removing 12,000 tons of COâ‚‚ between 2026 and 2029 using enhanced rock weathering. The procedure involves spreading finely ground minerals over broad areas, allowing them to absorb carbon dioxide using chemical reactions.
Microsoft struck a deal earlier with 1PointFive, targeting 500,000 tons of COâ‚‚ removal by 2030 using direct air capture (DAC) methods. Amazon and Google have also signed carbon removal agreements, but researchers caution that such technologies are still in their infancy and face efficiency and scalability issues.
DAC is significantly more costly than capturing emissions directly from industrial sources due to the low concentration of COâ‚‚ in the atmosphere. Meanwhile, rock weathering is influenced by various factors like energy use during mineral processing and is subject to possible side effects from mineral reactions.
In 2023, Microsoft said it had committed to removing 5 million metric tons of COâ‚‚ over 15 years. That same year, the company emitted 17.2 million metric tons, highlighting the scale of the challenge.
Nuclear investments emerge
Beyond carbon removal, tech companies are increasing their investment in nuclear energy. Microsoft and Amazon are considering a variety of strategies, including re-purposing existing reactors and exploring small modular reactors (SMRs).
Microsoft has partnered with Constellation Energy to revive the Three Mile Island Unit 1 reactor. Amazon acquired Cumulus Data’s nuclear-powered data centre operations, potentially accessing up to 960 megawatts from the Susquehanna plant. Microsoft also posted job listings in 2023 related to SMR and micro-reactor deployments.
Google and Oracle have also expressed interest in SMRs, though the technology is unlikely to see widespread deployment before the 2030s. Microsoft has even entered an agreement to purchase energy from fusion startup Helion Energy, which aims to deliver helium-3-based power by 2028, although no electricity has been produced so far.
Renewables and natural gas remain in play
Amazon signed agreements recently for 870 megawatts of solar and wind in Spain, while Microsoft has signed a 389-megawatt solar deal in the US. Google is exploring geothermal power and recently joined an industrial clean energy park initiative.
Despite these efforts, renewables face limitations. Wind and solar can be intermittent, requiring battery storage or backup generation. Geothermal plants like the one backed by Google are expected to generate 115 megawatts – helpful, but small relative to growing demand.
With energy needs rising, companies turn inevitably to fossil fuels. Microsoft has invested in natural gas plants in regions facing grid constraints, like Dublin. Meta is planning to power a data centre campus in Louisiana using a new 2.2-gigawatt natural gas facility. A 4.5-gigawatt gas-fired data centre is also being developed in Pennsylvania.
Despite the best intentions of large technology companies, the demand for services that require huge amounts of power means that it’s green initiatives that often fall the wayside, or are eclipsed by other activities in the company that need huge resources to supply.
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