Can we trust big tech to take the lead?
Recently, OpenAI, SoftBank and Oracle announced a joint project called Stargate, a $500 billion investment in AI infrastructure in the United States. This project includes the construction of data centers and promises to create over 100,000 jobs. The US President has expressed his support for this private sector investment, which aims to strengthen the U.S. position in artificial intelligence. (Source: Reuters)
While this development drives technological progress, it raises concerns about the impact on energy consumption. The focus seems primarily on unlocking energy resources without prioritizing sustainability. This is a missed opportunity, especially given the growing demand for energy-efficient solutions.
Data centers are the backbone of our digital economy, but they are also among the largest energy consumers worldwide. The increase in AI applications only exacerbates this pressure. Without an explicit focus on energy efficiency and sustainable energy sources, we risk a significant rise in CO2 emissions and the waste of precious resources.
Why don’t we act?
Incentives to be more responsible in green- and sustainable IT investments have been lacking. Who will lead? There is a system change needed as data centers traditionally earn money from energy usage, users are just not aware and behavioral change is hard. Companies wanting to improve struggle with getting the right data insights.
Maybe we need a crisis first. Known for procrastinating, humans take most action when the crisis is felt on a personal level. I expect that allowing data centers unlimited room to grow, will only bring the moment we hit boundaries closer in time. I don’t mean the planetary boundaries, but just practical limitations we will all feel on a personal level. E.g. to build houses or expand companies we need access to energy and this will compete against data center projects instead of going hand in hand and balancing considerations. Or in the long run, it will create more damage, extreme weather, floods and fires. What's the true price of the 100k jobs created?
Innovation will save the world?
Maybe you think that innovation will make all of these projects feasible without hitting boundaries? Be aware of the Jevons Paradox, this phenomenon explains that as technologies become more efficient and costs decrease, overall energy consumption can actually rise due to increased demand (the so called rebound effect). In the context of data centers, while efficiencies reduce the cost per computational task, the rapid growth in AI, cloud computing, and digital services means that total energy usage could continue to soar. With global energy shortages and an untamed growth in usage, the challenge lies in not only improving efficiency but also managing demand and scaling up renewable energy sources. Learn more about the Jevons Paradox.
The current wave of investments presents opportunities but also underscores a clear mandate: energy efficiency must become a top priority. Together, we can build a future where technology and sustainability go hand in hand. If we take this into account we will prevent rebound effects and soon will be talking about the Green IT paradox: If technology and sustainability go hand in hand, the more we keep in balance, the less negative impacts and the more positive impact because of technology.
Zero/zirrow waste?
This is where Zirrow comes in. With our technologies and expertise, we focus on maximizing energy efficiency in data centers. We believe that the power of innovation lies not only in the applications it enables but also in how it contributes to a more sustainable future. By making smarter use of energy and optimizing processes, we help companies reduce their ecological footprint without compromising performance.
The current wave of investments presents opportunities but also underscores a clear mandate: energy efficiency must become a top priority. Together, we can build a future where technology and sustainability go hand in hand.
Dutch potential
The question of how the Netherlands and the EU should respond to this issue is becoming increasingly urgent. Should we, like the U.S., invest heavily in AI and data centers? Or should we take our own approach, with a strong focus on sustainability and responsible energy use? The Netherlands has the opportunity to distinguish itself by developing innovative solutions that not only stimulate economic growth but also contribute to climate goals.
One example is the Dutch initiative to use waste heat from data centers for district heating. Such projects demonstrate that economic development and sustainability can go hand in hand. It is essential for the Netherlands to choose a future where technology is deployed responsibly and sustainably. There are so many innovative companies. I recently met Leafcloud and Coolgradient. Just like Zirrow these organizations are tackling a specific element of sustainable IT. Let’s not only bet on big projects from big tech, but let’s bet on Dutch (climate) tech to take the lead and save the world, save avoidable waste.
Want to know more about the Data Center Energy Guzzlers?
According to the International Energy Agency (IEA), data centers worldwide consumed an estimated 460 terawatt-hours (TWh) of electricity in 2022, accounting for approximately 2% of global electricity consumption. The IEA predicts that this consumption could rise to over 1,000 TWh by 2026, an amount comparable to Japan's current electricity usage.
(Source: Innovation Origins)
This increase is primarily driven by the growing demand for digital services and the rise of artificial intelligence. It is therefore crucial that we invest in energy-efficient technologies and sustainable energy sources to mitigate the ecological impact of this development.
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