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ARTICLE · 18 SEPTEMBER 2024

What Do AI's Massive Data Needs Mean For The Future Of Power Development?

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As data centre capacity expands to meet the exponential growth of AI, the rising demand for electricity presents a significant challenge to balancing AI's expansion with the climate commitments taken on by governments...

CanadaTechnology
Tyson Dyck
Tyson Dyck
Huw Evans
Huw Evans
Emily Stewart
Emily Stewart
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As data centre capacity expands to meet the exponential growth of AI, the rising demand for electricity presents a significant challenge to balancing AI's expansion with the climate commitments taken on by governments and companies. We examine the brewing energy demand crisis and the efforts being made towards sustainably powering AI.

Exponential growth in AI

Given its potential to transform the global economy by increasing productivity across various industries, significant resources are being invested by both the private and public sectors to develop AI, resulting in exponential growth. In 2023, the global AI market was estimated at US$196.63 billion and is projected to reach almost a tenfold increase (US$1,811.8 billion) by 20301. Canada released a national AI strategy in 2017 and has invested over $2 billion in the sector since then, with an additional $2.4 billion investment package announced as part of the 2024 federal budget, aimed at building and

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