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The emergence of artificial intelligence (AI) has transformed products, services, and the way we live our daily lives. From self-driving cars to advanced algorithms capable of making predictions far beyond human capabilities, AI’s impact is immeasurable. However, one aspect of this emerging technology is often overlooked: energy. While AI may seem like it exists in a realm separate from our everyday world, the amount of data and power required for its operation is very real.
To support this technological boom, data centers have sprung up worldwide in an attempt to keep pace. These centers are responsible for processing, storing, and managing AI data, a task that comes with a significant energy cost. Let’s consider an example: over the past two decades, companies like Meta and Google have increasingly moved operations to Ireland, drawn by its corporate-friendly tax policies. However, Ireland now faces a challenge: the demand for AI is outstripping its ability to meet energy needs. Last year, 21% of Ireland’s energy consumption was used by data centers, surpassing the energy used by all of the country’s urban homes combined. Fears of rolling blackouts and energy crises have prompted the Irish government to delay the construction of new data centers until 2028.
Ireland’s situation is a microcosm of the challenges that the United States and the rest of the world may soon face. Investing in renewable energy sources such as solar panels, wind turbines, and hydroelectric power is no longer just an eco-friendly choice—it is essential for any economy hoping to benefit from the AI revolution. The nations or regions that can meet the energy needs of critical industries will experience significant economic growth, as companies flock to areas with the infrastructure to support them. While it may not seem to impact daily life right now, domestic energy shortages are becoming an increasingly urgent issue. Simply put, the demand for AI technologies is growing faster than our ability to support it, and the consequences are quickly approaching.
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Author, Cole Privitere