As excited as I’m about how briskly synthetic intelligence is advancing, I’m extraordinarily involved that our power infrastructure received’t be as much as the problem.
By 2030, AI knowledge facilities may devour practically 10% of all of the electrical energy produced in the USA.
Supply: Goldman Sachs
That’s extra energy than each dwelling in California and New York mixed.
And we’re feeling the pressure already.
In Virginia — the epicenter of America’s knowledge heart trade — utilities are warning of multi-year delays to attach new initiatives. And in Georgia and Texas, regulators are scrambling to approve new pure fuel vegetation simply to maintain up with the demand.
Even Wall Road is on excessive alert about this difficulty. Goldman Sachs estimates that energy demand from U.S. knowledge facilities will greater than double by 2030, pushed virtually solely by AI.
But our energy grid is already stretched to its limits.
And if the grid can’t sustain, then how will America energy the following era of AI?
We’ve talked about how nuclear power would possibly turn out to be the final word energy supply for AI…
And the way fusion may present limitless power sooner or later.
However what if I informed you that the Earth’s crust holds a stunning power supply that might provide humanity’s power wants for the following 170,000 years?
Enter Hydrogen
Clear power proponents often deal with photo voltaic panels or wind generators.
However with out regular backup, they will go away whole areas susceptible when demand surges or the climate turns.
These power sources additionally take up a variety of land, and communities usually push again as a result of they don’t need generators or photo voltaic fields hurting their views or property values.
That’s why a unique clear expertise has began shifting into the highlight…
Hydrogen gas cells.
As an alternative of burning gas, a hydrogen cell splits molecules to generate electrical energy.
Picture: Volvo Building Tools & Companies
The one byproduct they create is water, and that may be reused for cooling in knowledge facilities.
To be clear, this isn’t a brand new expertise. Hydrogen gas cells have been a distinct segment supply of power for many years now.
They’ve been used as backup energy for telecom towers and in experimental buses in California. They’ve even been utilized in forklifts in Amazon’s warehouses.
However now, they’re being scaled to energy among the most energy-hungry machines on Earth.
The very best instance sits simply outdoors Houston, the place a startup known as ECL has constructed what it calls the world’s first off-grid, hydrogen-powered AI campus.
This pilot facility runs one megawatt of gas cell capability. That’s sufficient to drive racks of NVIDIA’s newest GB300 and NVL72 methods, that are among the most superior AI chips in the marketplace.
However ECL isn’t stopping there.
Its subsequent part requires one gigawatt of capability. That’s a thousand-fold soar.
For perspective, that’s the dimensions of a full-scale nuclear plant. Besides this facility can be modular, scalable and emission-free.
What makes ECL’s design distinctive is its effectivity. The info heart runs at an influence utilization effectiveness (PUE) of simply 1.1, in comparison with a typical facility’s 1.5 or greater.
And wastewater from the cells is captured and recycled to chill the info heart. Meaning there’s no want for exterior water. And that’s going to be essential as droughts proceed to hit the American West.
It additionally reveals why hydrogen has lately began getting federal backing.
In late 2023, the Division of Vitality (DOE) introduced $7 billion in federal funding to launch seven regional clear hydrogen hubs to speed up hydrogen manufacturing, storage and distribution.
These hubs have been deliberate to span areas together with the Gulf Coast, Midwest and Appalachia, and have been chosen to anchor new hydrogen infrastructure throughout strategic corridors.
The DOE anticipated that, with the assistance of personal firms, the entire funding may rise to just about $50 billion.
However that hit a snag final week when the DOE introduced it could cancel over $7.5 billion in financing for a whole bunch of power initiatives.
Amongst these deliberate cancellations was funding for proposed hydrogen hubs in California and the Pacific Northwest.
But when we will get previous partisan politics and deal with what’s greatest for our nation’s power wants, new hydrogen hubs might be an enormous boon for each AI and the environment.
Right here’s My Take
Till now, hydrogen’s largest downside has been discovering a buyer sufficiently big to justify scaling up.
If AI knowledge facilities turn out to be that buyer, the rollout of hydrogen as an power supply may speed up a lot sooner than anticipated.
However hydrogen isn’t a silver bullet that can immediately resolve our power wants. And there are nonetheless some main points that must be solved.
Most hydrogen at the moment is constructed from pure fuel, not renewable electrical energy. Transporting and storing it at scale is dear. And hydrogen gas cells should show they will run for years with out downtime. That’s a non-negotiable requirement for hyperscale computing.
However AI is forcing the U.S. to rethink the way it generates and delivers energy. And hydrogen is among the few applied sciences that may ship giant quantities of electrical energy, on-site, with out ready a long time for brand new transmission traces.
A latest report signifies that Earth’s crust may maintain naturally occurring hydrogen reserves giant sufficient to produce humanity’s power wants for 170,000 years.
That might imply a less expensive, sooner path to off-grid hydrogen knowledge facilities…
And a brand new power race over who faucets these underground reserves first.
However despite the fact that this report is promising, most consultants see it as a long-shot situation that’s nonetheless years from proving viable at scale.
I’m bullish on hydrogen because the “gas of the long run.”
And with AI demand surging previous what the grid can provide, that future could be nearer than we expect.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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