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Published :23 January 2024
AI

The Surging Energy Appetite of Artificial Intelligence

Artificial Intelligence Energy Consumption

In recent years, Artificial Intelligence has gained hype in various sectors. This is because AI makes and implements decisions based on data independently. The intelligence needs to be more specific and include research areas like robotics or linguistics.

Artificial Intelligence Energy Consumption

The accumulation of artificial intelligence electricity has been increasing the demand for powerful chips that are being deployed in data centers to train complex large language models and move those models into production with AI inference and this has led to an increase in energy usage. 

AI Electricity Demand Forecast to Surge

  • Morgan Stanley has estimated that global data center power use will triple in 2024, with 46 TWh reach.

  • Wells Fargo projects are at the peak of 8.050% growth in AI power demand from 2024 to 2030, reaching 652 TWh.

  • The IEA forecasts that global electricity demand from AI, and crypto could reach 800 TWh by 2026. 

AI Power Demand

With a rapid rise in AI power usage, GPU demand is showing no signs of slowing as Big Tech spends billions on AI infrastructure, with GPU generation seeing peak power consumption. The industry is addressing power consumption, more specifically power efficiency per chip, looking to be emerging as a third realm of competition.

Does AI Use a Lot of Energy? 

AI energy use is addressing power requirements in many industries. One such example is here.

Taiwan Semiconductor is one example of a supply chain company since its advanced nodes tout lower power consumption and increased performance. Here comes the acceleration of AI which is a shift from primarily being produced on the 5nm node to 3nm node.

How Does AI Use Energy?

AI systems require substantial computational resources for many technologies, especially for deep learning. The energy use in AI is split into two main categories:

  • Training: It's the process of creating AI models with vast amounts of data and this process is energy-intensive. 

  • Inference: This is the application of trained models to new data, consuming significant energy, at scale.

Major energy is consumed by data centers housing powerful GPUs and other hardware designed for AI computations. 

Artificial Intelligence in the Energy Industry: A Double-Edged Sword

AI energy demand has become important and has great potential for the future design of energy systems.  The main areas of application are electricity trading, smart grids, or sector coupling of electricity, heat, and transport.  Provisions for the use of AI energy-informational systems include digitalization of the energy sector and its large set of data. AI helps the energy industry be more efficient and secure by evaluating data volumes. 

Artificial Intelligence in the Power Grid - Smart Grids and Sector Coupling

Smart grids are one better area of application. These networks transport both electricity as well as data. It is becoming important for power generation to react intelligently to consumption with an increasing number of volatile power generation plants like solar and wind. AI helps in evaluating, analyzing, and controlling data of various participants connected via the grid.

Another focus of AI energy usage is the integration of electro-mobility. An increase in e-cars offers opportunities like storing electricity and stabilizing the grid. For example, adjusting the charging demand to price signals and availability can be monitored and coordinated with the help of AI.

Furthermore, AI can help coordinate maintenance work and determine optimal times for maintenance of networks, helping minimize costs and loss of profit as well as disturbances of the network operation.

Artificial Intelligence in Electricity Trading

Artificial Intelligence in power trading helps improve forecasts by evaluating systematically the large amount of data in electricity trading like weather data or historical data. AI can help in the field of forecasts by facilitating and speeding up the integration of renewables. Machine learning and Neural networks are the major technologies in forecasts in the energy industry. 

Developments in forecasting quality have shown the potential of AI. There is a reduction in the demand for control reserve, and even the share of volatile power generators has increased. 

Artificial Intelligence in the Virtual Power Plant

The AI algorithms help generate accurate forecasts by coordinating various participants in the virtual power plant. This happens when it is necessary to coordinate electricity usage. The basis of analyses is live feed-in data, historical data, data from electricity trading centers, and weather forecasts.

Some AI algorithms trade on their own, like algorithmic trading, algo trading, or automated trading. This helps to detect and prevent deviations from the norm, like the abuse of market power. 

AI for Power Consumption

Consumers connected to electricity systems contribute to a stable and green electricity grid, such as smart home solutions and smart meters which already exist. Smart networked homes adapt to household usage patterns by reacting to prices in the electricity market. By analyzing user data, they can alter as per user preferences in calculations. 

Major Benefits of Using AI in the Energy Industry

  • High-Efficiency Production of Energy

  • Reduced Carbon Emissions

  • Lower Costs

  • Safer Working Conditions

Final Wrap

Many parts of the energy sector have overhyped AI Energy Consumption. But always there is a breakthrough about “ Where to apply AI?” “How to apply AI?” to deliver business transformation. We have explored AI in the Energy Industry demonstrating its power in production optimization and changing storage. Osiz Technologies, a top-notch AI development company understands the future of energy and solutions for secure energy systems. Contact our experts to explore our free demo. 

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Thangapandi

Founder & CEO Osiz Technologies

Mr. Thangapandi, the CEO of Osiz, has a proven track record of conceptualizing and architecting 100+ user-centric and scalable solutions for startups and enterprises. He brings a deep understanding of both technical and user experience aspects. The CEO, being an early adopter of new technology, said, "I believe in the transformative power of AI to revolutionize industries and improve lives. My goal is to integrate AI in ways that not only enhance operational efficiency but also drive sustainable development and innovation." Proving his commitment, Mr. Thangapandi has built a dedicated team of AI experts proficient in coming up with innovative AI solutions and have successfully completed several AI projects across diverse sectors.

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