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The Boom, Part 2: AI’s Growing Appetite for Energy and Resources

The AI revolution isn’t just reshaping computing—it’s forcing a global rethink of energy and resource consumption. The unprecedented scale of AI data centers is driving demand for electricity, cooling infrastructure, and even nuclear power at levels once reserved for entire nations.

Traditionally, data centers have relied on CPUs for general computing needs. But AI models require an enormous amount of specialized processing power. The latest GPUs—designed specifically for AI—consume significantly more energy than their predecessors. A typical CPU requires 250 to 500 watts of power, whereas an AI-optimized GPU can draw over 1,000 watts. Multiply that by the tens of thousands of GPUs packed into AI data centers, and the numbers become daunting.

In Northern Virginia, the world’s largest data center hub, available electrical capacity has been nearly exhausted. Some AI giants are turning to alternative energy solutions.

Microsoft is reviving the decommissioned Three Mile Island nuclear plant to power future AI operations. Google and Amazon have announced plans to develop a new generation of nuclear reactors to ensure stable energy supplies. Meanwhile, Elon Musk’s AI startup, xAI, is sidestepping green energy altogether, opting for gas turbines to power its Memphis data center.

Cooling is another major concern. AI chips generate so much heat that conventional air-based cooling methods are no longer sufficient. Companies are increasingly turning to liquid cooling, where water is pumped directly through data centers to absorb heat. Google has already reengineered its facilities to integrate this technology, but the approach has raised new challenges. The company’s AI data centers consumed 6.1 billion gallons of water in 2023—an increase of 17% from the previous year.

Some communities are resisting this resource-intensive expansion. In drought-prone regions like California, the prospect of AI data centers guzzling billions of gallons of water is sparking regulatory scrutiny. Others are grappling with energy shortages, as AI-driven demand pushes local grids to the brink.

The race to expand AI infrastructure is happening at an unprecedented pace. “What was probably going to happen over the next decade has been compressed into a period of just two years,” said Google CEO Sundar Pichai.
With no slowdown in sight, AI’s hunger for power and cooling capacity is redefining entire industries. Whether this revolution leads to sustainable innovation or a crisis of resource depletion remains to be seen.