AI data centers use a lot of electricity & water: Can supply keep up?

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The rising popularity of AI means there will need to be more data centers. But those data centers require a lot of electricity to run and water to keep cool. Will supply be able to keep up with demand? PuckNews Founding Partner William D. Cohan joins Yahoo Finance Live to discuss the supply issues that may impact AI's growth. 'Many of these data centers, of course, are related to companies like Google (GOOG, GOOGL) and Meta (META) and Microsoft (MSFT)' and 'data centers require huge amounts of electricity,' Cohan notes. 'It's not only electricity, it's also water. These data centers use a tremendous amount of water. I think Google said in 2022, it used 5.2 billion gallons of water to cool its data centers. So the combination of huge electrical needs and huge water cooling needs is... growing an acute situation,' Cohan says.

"It's not only electricity, it's also water. These data centers use a tremendous amount of water. I think Google said in 2022, it used 5.2 billion gallons of water to cool its data centers. So the combination of huge electrical needs and huge water cooling needs is... growing an acute situation," Cohan says.As tech companies race to adapt and implement the latest and greatest in AI, there's a major roadblock that could prove detrimental to the new technology.

William Cohan is a founding partner at Puck News. And he joins us now for more on this. So we're seeing these large language models becoming very advanced, very quickly. When it comes to memory storage, and the need for more energy, how big is that gap between the ability to manage this with electricity?Well, apparently the need for electricity is gargantuan.

I think Google said, in 2022, it used 5.2 billion gallons of water to cool its data centers. So the combination of huge electrical needs and huge water cooling needs is a growing and acute situation.

 

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