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Experts warn that data centers powering AI and cryptocurrency could pose a threat to the climate

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“The Power of Us: Addressing Climate Change and Environmental Impact in the Age of Data Centers”

ABC News is delving into the critical issue of climate change and its impact on the environment with its new series, “The Power of Us: People, The Climate, and Our Future.” The series explores potential solutions to the challenges posed by climate change, including the role of artificial intelligence, cryptocurrency, and remote work in exacerbating energy consumption and carbon emissions.

Experts warn that the rapid growth of data centers, driven by the increasing demand for processing power for AI and cryptocurrency, could have significant implications for the fight against climate change. In the U.S. alone, data centers accounted for over 4% of the nation’s electricity use in 2022, a figure expected to rise to 6% by 2026.

The surge in energy consumption is particularly concerning given the projected growth of the AI industry, which is expected to increase its energy demand tenfold by 2026. Companies like Nvidia, a major player in the AI market, have seen exponential revenue growth, raising questions about the environmental impact of their products.

In response to these concerns, Nvidia has highlighted the energy efficiency of its products, arguing that GPU-accelerated systems can reduce energy use in data centers. The company also touts the potential of AI-driven tools to address climate change and promote carbon reduction and management.

Cryptocurrency, another major driver of data center energy consumption, accounted for about 0.4% of global energy consumption in 2022, equivalent to the energy footprint of the Netherlands. The process of crypto mining, used to complete transactions and generate new coins, puts a strain on data centers and contributes to their growing energy demand.

The shift to remote work during the COVID-19 pandemic also played a significant role in increasing data center usage, with demand spiking by as much as 35%. While some of this demand has subsided as employees return to the office, the rise of hybrid work arrangements has kept data center usage above pre-pandemic levels.

Efforts are underway to make data centers more sustainable by connecting them to renewable sources of electricity. As data centers continue to expand, they will serve as a test case for how to accommodate increased electricity usage while mitigating the environmental impact.

The growing energy consumption of data centers underscores the urgent need to address the environmental implications of technological advancements. How we manage this growth will set the stage for sustainable development in other economic sectors in the years to come.

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