Photo credit: www.cnbc.com
Amazon and Nvidia Discuss AI Power Sources at Energy Conference
OKLAHOMA CITY — This week, Amazon and Nvidia engaged with oil and gas executives, emphasizing that various energy options, including fossil fuels like natural gas, will be considered essential for powering artificial intelligence (AI).
The discussions took place at the Hamm Institute for American Energy, where representatives from technology and energy sectors convened to explore how the United States can address the escalating energy demands of AI data centers.
While major tech firms have predominantly focused on renewable energy to reduce carbon emissions, the political landscape is shifting. Former President Donald Trump’s policies have favored an increase in fossil fuel production, particularly natural gas, thus altering the commitments made toward climate change.
There is a growing recognition within the tech industry that natural gas will play a critical role, at least temporarily, to support AI development.
“To meet the energy needs of the grid, a diversified approach will be required for the foreseeable future,” stated Kevin Miller, Amazon’s vice president of global data centers, during a panel discussion. “It’s important to recognize that we will need additional thermal generation to satisfy short-term demands.”
Miller reiterated Amazon’s commitment to reducing carbon emissions, highlighting the company’s status as the largest corporate buyer of renewable energy. He noted investments in advanced nuclear and carbon capture technologies as part of the company’s strategy to lessen environmental impacts.
Despite these initiatives, Miller acknowledged that such advanced technologies wouldn’t be operational until the 2030s, indicating an urgent need for reliable and sufficient power now.
“Our top priority is ensuring access to power to meet customer capacity demands,” Miller explained. “We aim to achieve net-zero carbon by 2040, but our immediate focus is power accessibility.”
Nvidia is also committed to sustainability while recognizing the necessity of keeping “all options on the table,” particularly as AI grapples with energy shortages, according to Josh Parker, the company’s senior director of corporate sustainability.
“In the end, we simply require power,” Parker stated during the panel. “Some of our clients prioritize clean energy, while others may not be as concerned with the source.”
Jack Clark, co-founder of Anthropic, urged data center developers to adopt a realistic perspective on available energy sources. Anthropic projects a need for 50 gigawatts of new power by 2027, a volume comparable to the output of approximately 50 nuclear reactors. Clark posited that AI growth could stimulate the development of innovative energy solutions in the longer term.
However, the suggestion of utilizing coal as a power source raised concerns. Trump’s recent order aimed at increasing coal production in response to AI demands has sparked debate. When the Amazon and Nvidia executives were prompted about coal’s potential role in fueling AI, they refrained from providing a definitive response.
“There are more alternatives than just coal,” Clark acknowledged. “While it’s a possibility, it’s not our top priority.”
Catch up on the latest energy news from CNBC Pro:
Source
www.cnbc.com