Is Computing Power the Future of AI? No, It’s Electricity!
Recently, Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), expressed concerns regarding the growing energy consumption and carbon footprint of cryptocurrency mining and data centers. She warned that this situation is likely to worsen in the coming years.
Cryptocurrency and artificial intelligence (AI) are two rapidly growing industries that are generating immense enthusiasm. However, concerns about their energy consumption and carbon emissions are mounting. In an optimistic scenario (low electricity usage), the share of energy consumption by these industries is projected to rise modestly to 2.2%. In a pessimistic scenario (high electricity usage), this share could swell to nearly 6%.
For instance, training GPT-3, a large-scale AI language model, consumes as much as 1,287 MWh of electricity—equivalent to 3,000 Tesla electric vehicles collectively traveling over 320,000 kilometers.
The numbers are striking. In 2022, global data centers consumed nearly 460 billion kWh of electricity. By 2026, this figure is expected to double to 1 trillion kWh. Clearly, electricity will be a persistent demand in the AI-driven era.
As for carbon emissions, projections for these two industries indicate diverging trends. By 2027, cryptocurrency mining’s share of global carbon dioxide emissions is likely to decrease, but in a worst-case scenario, it could double from current levels. Meanwhile, data center emissions could reach 450 million tons, accounting for 1.2% of the global total in a worst-case scenario.
Environmental Impact of Cryptocurrency Mining
Gopinath’s remarks come amid heated debates about the environmental impact of Bitcoin mining. According to the Cambridge Bitcoin Electricity Consumption Index, annual greenhouse gas emissions from Bitcoin mining exceed those of entire nations, such as Greece.
Despite growing carbon footprints, countries continue to explore the economic potential of these emerging industries. For example, U.S. President Donald Trump has pledged to make the U.S. a global hub for Bitcoin mining. Earlier this year, Russian President Vladimir Putin legalized cryptocurrency mining in Russia.
The Growth of Renewable Energy and the Smart Grid Revolution
In response to surging energy demand, global power generation capacity has grown rapidly. Under the push for carbon reduction, renewable energy now accounts for 86% of newly added power generation capacity.
However, renewable energy generation is subject to the variability of natural conditions. For example, the efficiency of solar power generation can vary significantly between sunny and cloudy days. This variability has directly catalyzed the development of smart grids.
The Role of Energy Storage Systems (ESS) in Smart Grids
The development of smart grids relies on energy storage systems (ESS), which maximize the advantages of renewable energy while ensuring a stable and reliable power supply for the AI era.
Synergy Between ESS and Smart Grids
ESS plays a pivotal role in storing and distributing electricity, effectively mitigating the volatility of renewable energy. For instance, surplus electricity generated by photovoltaic (PV) systems during sunny periods can be stored in batteries and released on cloudy days or at night to compensate for shortfalls. Similarly, in wind power systems, ESS acts as a crucial backup during periods of low wind.
This balancing mechanism enhances the flexibility and efficiency of smart grids, making renewable energy more stable and controllable.
ESSEmpowering AI’s Energy Needs
The rapid growth of AI technologies has significantly increased the demand for computing power, which, in turn, requires massive electricity consumption. As a critical component of smart grids, ESS helps alleviate peak load pressures and improve power utilization efficiency.
For example, during peak electricity demand for AI model training, ESS can release stored energy, preventing grid overload and system failures. Additionally, the widespread adoption of renewable energy paired with ESS supports the supply of "zero-carbon electricity," reducing the carbon footprint associated with AI advancements.
Renewable Energy + ESS: Driving a Green AI Future
In the global pursuit of carbon neutrality, renewable energy is steadily replacing traditional fossil fuels. With rapid advancements in storage technologies like lithium-ion and sodium-ion batteries, the "renewable energy + ESS" model has become a cornerstone of future energy systems.
This model not only provides sustainable energy solutions for the AI-driven era but also lays the foundation for a green, low-carbon society. For instance, integrating distributed PV systems with home ESS allows users to meet their energy needs while feeding surplus electricity back into the grid, further promoting the adoption and development of renewable energy.
The rising electricity demand of the AI era presents a critical challenge for global energy systems. Renewable energy technologies, centered around ESS, offer a promising solution to this challenge. By improving energy utilization efficiency and advancing smart grids, ESS equips AI’s future with "green wings" to soar sustainably.
