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Covering electricity price increases from our data centers

anthropic.com

41–50 of 110 posts

Re: Covering electricity price increases from our data centers

#41
Electricity price is a weird beast. Everyone has to pay the price of the most expensive electricity source (generally gas plants) that was recruited to respond to the power demand. It means that during a spike the electricity price can double or triple.

What I infer from Anthropic post is that they will estimate the energy price as if they weren't using it and pay the difference if their use upped the price.

Re: Covering electricity price increases from our data centers

#44
post #19

Earlier quoted context omitted.

> These things are so hideously inefficient. Quite the opposite, really. I did some napkin math for energy and water consumption, and compared to humans these things are very resource efficient. If LLMs improve productivity by even 5% (studies actually peg productivity gains across various professions at 15 - 30%, and these are from 2024!) the resource savings by accelerating all knowledge workers are significant. Si…

So with the AI is doing more of the work and you need less humans, what are you doing with the extra humans to eliminate their no-longer-productive resource consumption? Saying “we can do the same work with less resource use” doesn’t mean resource consumption is reduced. You’ve just gone from humans using resources to humans using the same resources and doing less work, plus AI using more resources.

Turn them into biogas to create more energy for DCs.

Re: Covering electricity price increases from our data centers

#45
post #41

Electricity price is a weird beast. Everyone has to pay the price of the most expensive electricity source (generally gas plants) that was recruited to respond to the power demand. It means that during a spike the electricity price can double or triple. What I infer from Anthropic post is that they will estimate the energy price as if they weren't using it and pay the difference if their use upped the price.

Gas plants are only the most expensive in the simple cycle configuration. Combined cycle plants are competitive with other forms of baseload generation. The trouble is the response time.

With day ahead forecasting, we can try to turn that peak load into base load. Grid operations are a non trivial part in how this AI energy situation plays out.

Re: Covering electricity price increases from our data centers

#46
post #41

Electricity price is a weird beast. Everyone has to pay the price of the most expensive electricity source (generally gas plants) that was recruited to respond to the power demand. It means that during a spike the electricity price can double or triple. What I infer from Anthropic post is that they will estimate the energy price as if they weren't using it and pay the difference if their use upped the price.

pay the difference only over their energy consumption, or pay the difference for the whole group?

Re: Covering electricity price increases from our data centers

#48
post #41

Electricity price is a weird beast. Everyone has to pay the price of the most expensive electricity source (generally gas plants) that was recruited to respond to the power demand. It means that during a spike the electricity price can double or triple. What I infer from Anthropic post is that they will estimate the energy price as if they weren't using it and pay the difference if their use upped the price.

That's for the spot price. If you have bought futures then that won't impact you

Re: Covering electricity price increases from our data centers

#49

Please do hang your datacenters in space so as not to piss away your waste heat in our rivers, soils or atmosphere. Go to the bathroom upstairs, don't use our ecosystem as your latrines if you can direct it straight to the CMB.

I wish HN would have a downvote penalty mechanism, where the number of replies on comments you downvote should be at least x percent, say 50%.

Oh no the burden of actually explaining why you want to de-emphasize a comment.

Re: Covering electricity price increases from our data centers

#50

One of the potential upsides of AI in the USA is we'll bring down electrical prices compared to something like China. Power has to be abundantly plentiful and concentrated. Maybe then, we could afford to smelt an ingot of aluminum in the USA. Until then, I guess we're just sadly just burning coal to create cat memes. I hope Anthropic can lead the charge. Crypto was already a massive setback in terms of clean power, A…

How will that happen? China is building more generation as we speak. And I mean a lot. The gap is widening and the rate of change is even worse, thanks to "clean beautiful coal" or whatever Trump said.
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