Schneider Electric warns of future where datacenters eat the grid

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Schneider Electric warns of future where datacenters eat the grid

Schneider Electric's report highlights the urgent need for policymakers to manage the energy consumption of AI datacenters. It outlines four potential scenarios for the future, ranging from sustainable growth to energy crises, emphasizing the importance of strategic planning. The report indicates that without careful guidance, the rising demand for electricity from AI could overwhelm existing grids and have significant environmental impacts.

The scenarios presented by Schneider Electric forecast a general increase in energy consumption from AI, with projections showing a rise from 100 TWh in 2025 to as much as 1,370 TWh by 2035 under unchecked growth. Recommendations include optimizing datacenter infrastructure and developing more efficient AI models to mitigate energy demands. The overarching message stresses the need for collaboration among governments, industry leaders, and AI companies to ensure sustainable practices in AI development.

• Schneider Electric outlines four scenarios for AI energy consumption.

• Urgent need for sustainable practices in AI datacenter energy management.

Key AI Terms Mentioned in this Article

Generative AI

Generative AI refers to AI systems that can create content, driving significant energy consumption in datacenters.

Power Usage Effectiveness (PUE)

PUE is a measure of datacenter energy efficiency, crucial for optimizing energy consumption in AI infrastructure.

Companies Mentioned in this Article

Schneider Electric

Schneider Electric focuses on energy management and automation, providing insights into AI's impact on electricity consumption.

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