The Future of Energy Consumption: Data Centres and Renewable Power

Concept of Data to GPU to Power Demand

The surge in artificial intelligence (AI) and high-performance computing (HPC) has led to a significant increase in demand for GPUs. GPUs are essential for running complex AI models and HPC applications due to their ability to handle multiple operations simultaneously. This has also given rise to the concept of GPU-as-a-Service (GPUaaS).

Data Centres: Sector Seeing a Boom in Power Demand

The growth of cloud computing, AI, and HPC is driving up power consumption in data centres. The surge in cloud computing, AI, and HPC necessitates immense computational power, fuelled by massive datasets and energy-intensive hardware like GPUs. This, coupled with the 24/7 operation of cloud services and the need for robust cooling systems to manage the generated heat, significantly increases power consumption in data centres.

Role of Renewable Power

Renewable energy sources, such as solar, wind, and hydro, are playing a crucial role in decarbonizing our energy systems. The rapid growth of renewable energy technologies is transforming the energy mix, with renewables expected to account for nearly 20% of final energy consumption by 2030. This shift is essential for reducing greenhouse gas emissions and mitigating climate change.

Long-Term Power Purchase Agreements (PPAs)

To control costs and ensure a stable long-term power supply, companies are entering into long-term Power Purchase Agreements (PPAs). These agreements provide a fixed price for electricity over an extended period, reducing the risk of price volatility and securing a reliable energy source.