Taking a closer look at AI's supposed energy apocalypse
arstechnica.com
Taking a closer look at AI's supposed energy apocalypse
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Re: Taking a closer look at AI's supposed energy apocalypse
#2This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and monopolies that distort the market for energy for a while, but in the long run, this is a self-fixing problem.
Re: Taking a closer look at AI's supposed energy apocalypse
#3This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
The issue is an environmental one. The cost here is environmental damage. The solution will need to be policy decisions that take that damage into account.
Re: Taking a closer look at AI's supposed energy apocalypse
#4This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
The issue is an environmental one. The cost here is environmental damage. The solution will need to be policy decisions that take that damage into account.
That's why much of the world is gradually shifting over to renewable energy usage. In a world where energy is renewable, does not generate greenhouse gas and (hopefully) does not produce other externalities, our best way of dealing with these resource allocation problems is the free market.
The alternative is regulation, which, I'm not even sure how it could be used to address this particular issue. Ban AI or crypto? Humans will find new ways to waste vast amounts of energy with computers. Require that computers have a certain efficiency rating of megaflops/joules? People will use more of this now far more efficient computing, resulting in more overall usage. Require corporations to be audited for energy efficiency and be certified? Goodbye all small players that cannot handle all the overhead of such legislation.
Re: Taking a closer look at AI's supposed energy apocalypse
#5This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
Everyone else has to pay the price that data centers are willing to as well. And they can afford quite high prices before having margin troubles - likely much higher than what we as residents want to pay for energy.
Re: Taking a closer look at AI's supposed energy apocalypse
#6Earlier quoted context omitted.
The issue is an environmental one. The cost here is environmental damage. The solution will need to be policy decisions that take that damage into account.
That's why much of the world is gradually shifting over to renewable energy usage. In a world where energy is renewable, does not generate greenhouse gas and (hopefully) does not produce other externalities, our best way of dealing with these resource allocation problems is the free market. The alternative is regulation, which, I'm not even sure how it could be used to address this particular issue. Ban AI or crypto?…
Tax data center usage
Re: Taking a closer look at AI's supposed energy apocalypse
#7This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
In theory, there's no difference between theory and practice. In practice, there is.
Re: Taking a closer look at AI's supposed energy apocalypse
#8Earlier quoted context omitted.
That's why much of the world is gradually shifting over to renewable energy usage. In a world where energy is renewable, does not generate greenhouse gas and (hopefully) does not produce other externalities, our best way of dealing with these resource allocation problems is the free market. The alternative is regulation, which, I'm not even sure how it could be used to address this particular issue. Ban AI or crypto?…
Tax data center usage
And watch the entire compute infrastructure and industry of vital importance (state of the art compute capabilities in AI) move to other nations and then later end up being dependent on them.
Re: Taking a closer look at AI's supposed energy apocalypse
#9This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
Everyone else has to pay the price that data centers are willing to as well. And they can afford quite high prices before having margin troubles - likely much higher than what we as residents want to pay for energy.
This is on the assumption that supply will continue to remain constrained, excess energy usage, might as well be the investments necessary to shift to more Solar Panels and renewable energy storage, high compute intensive workloads can be executed anywhere, higher energy usage, might as well incentivise optimising AI, Research and Other Compute-intensive training workloads to shift to day time, when solar power peaks, and process everything during that time. The capabilities that this unlocks are tons, driving more investment into advanced battery tech, solar tech, etc.
Higher Consumption also drives investments to generate Higher Supply and hence future surplus and improvements in standard of living.
Re: Taking a closer look at AI's supposed energy apocalypse
#10This is an economics problem: if the cost of energy is lower or equal to the benefit of consuming it, the energy will be consumed. As more and more energy is consumed to run these datacenters, price of energy will go up, and datacenters will learn to either be more efficient, or will pass on these costs to their users who will learn to be more efficient. Of course, there might be inefficiencies like subsidies and mon…
The issue is an environmental one. The cost here is environmental damage. The solution will need to be policy decisions that take that damage into account.
It would be great if more externalities were priced in to the cost of energy, but there doesn't seem to be anything special about AI datacenters vs. any other use of energy. Data centers actually seem much more consciences about the impacts of their energy. I don't think I've read any headlines about cement plants trying to switch to 100% renewable.