It's time to change !

Oct 3rd 2024

Data centers, the backbone of the digital economy, have become massive energy consumers. According to a study by the Electric Power Research Institute ( EPRI ), data centers could account for up to 9% of U.S. electricity consumption by 2030. To address this growing demand, companies have turned to solutions like water cooling. For instance, Cloud Giants draws millions of liters of water from aquifers and rivers to cool their infrastructure. However, this method is far from environmentally friendly, depleting water resources and threatening local ecosystems.

Simultaneously, power grids are becoming overloaded. Electrical lines are struggling to keep up with demand, especially with the surge in AI-related projects. A " The Wall Street Journal " article from September 28, 2024, reports that U.S. data centers now consume three times the electricity capacity of New York City. Electric utilities are faced with difficult decisions: modernize infrastructure to meet demand at an enormous cost. In some regions, like Salt Lake City, data center projects have been temporarily halted due to a lack of transmission capacity.

The use of data centers as heat sources to warm water tanks in some countries is another example of inefficient resource management. While this solution may seem innovative, it is, in fact, ineffective and counterproductive. It is absurd to use such complex and energy-intensive infrastructures for such trivial purposes. A datacenter is not a radiator.

Some companies are exploring extreme solutions, such as placing data centers underwater or in the Arctic Circle to take advantage of natural cooling. However, these initiatives only shift the problem elsewhere. They introduce new logistical challenges while continuing to pollute and disrupt the environment. The underwater networks, grids and infrastructure required for these operations only exacerbate the environmental footprint of such projects.

In this context, venture capital (VC) firms continue to invest heavily in AI-related startups, even though delays in infrastructure deployment due to energy issues can extend over several years. These delays often compromise the short-term profitability of such investments, as startups struggle to deploy their projects quickly enough to repay VCs.

So why continue to invest in these energy-hungry startups, rather than focusing on those that offer solutions to reduce the environmental impact of data centers? As I often say: " It's always time to tackle the causes rather than the consequences ! ". One of the major causes is the excessive power consumption of processors used in data centers, like Intel chips, which consume a lot of energy and produce significant heat.

A shift in paradigm is necessary. In this regard, Apple has set an example by replacing all Intel processors in its machines with modern processors that incorporate AI functionalities. These faster, more efficient systems have significantly reduced power consumption, and most importantly, they do not overheat. They no longer require fans, relying instead on simple passive radiators for cooling.

This transition perfectly illustrates the direction that also data centers should follow. An innovative solution is offered by the startup Altwy , which has developed a cloud management software tailored for data centers. This software optimizes resource management by leveraging modern, energy-efficient, and “cool“-running processors. Investing in Altwy means giving data centers the ability to reduce both their energy and environmental costs, while providing a platform that is simple to manage and administer.

In conclusion, rather than continuing to seek expensive and ineffective solutions to address the symptoms of the data center energy crisis, it is essential to address the root cause. Investing in more efficient and environmentally friendly technologies, like those proposed by Altwy, would provide a truly sustainable long-term solution.

Christophe Lambert

CEO Altwy

Sources : The Wall Street Journal EPRI Apple Arm RISC-V International

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