Why Energy Is A Big And Rapidly Growing Problem For Data Centers

U.S. data centers use more than 90 billion kilowatt-hours of electricity a year, requiring roughly 34 giant (500-megawatt) coal-powered plants. Global data centers used roughly 416 terawatts (4.16 x 1014 watts) (or about 3% of the total electricity) last year, nearly 40% more than the entire United Kingdom. And this consumption will double every four years.

Streaming video has already changed the game, but the explosion of artificial intelligence and internet-connected devices will change the entire landscape. AI is the future, and AI is hungry for processing power. IoT is projected to exceed 20 billion devices by 2020 (some analysts believe we will reach that number this year alone). Given there are currently 10 billion internet-connected devices, doubling that to 20 billion will require massive increases to our data center infrastructure, which will massively increase our electricity consumption.

How on earth can we possibly build all the power plants required to supply electricity to twice as many data centers in the next four years? The simple answer is that we can’t.

Stare Into The Lights My Pretties

Energy riches fuel bitcoin craze for speculation-shy Iceland

Iceland is expected to use more energy ‘mining’ bitcoins and other virtual currencies this year than it uses to power its homes.

With massive amounts of electricity needed to run the computers that create bitcoins, large virtual currency companies have established a base in the North Atlantic island nation blessed with an abundance of ‘renewable energy.’

The energy demand has developed because of the soaring cost of producing and collecting virtual currencies. Computers are used to make the complex calculations that verify a running ledger of all the transactions in virtual currencies around the world.

Among the main attractions of setting up bitcoin mines at the edge of the Arctic Circle is the natural cooling for computer servers and the competitive prices for Iceland’s abundance of renewable energy from geothermal and hydroelectric power plants.

Johann Snorri Sigurbergsson, a business development manager at the energy company Hitaveita Sudurnesja, said he expected Iceland’s virtual currency mining to double its energy consumption to about 100 megawatts this year. That is more than households use on the island nation of 340,000, according to Iceland’s National Energy Authority.

Pirate Party legislator McCarthy has questioned the value of bitcoin mining for Icelandic society, saying residents should consider regulating and taxing the emerging industry.

“We are spending tens or maybe hundreds of megawatts on producing something that has no tangible existence and no real use for humans outside the realm of financial speculation,” he said. “That can’t be good.”