The energy rivalry between artificial intelligence and bitcoin mining is intensifying. As tech companies improve artificial intelligence, they are competing with bitcoin miners for energy. This competition is transforming U.S. energy consumption as both sectors have driven unprecedented electricity demand.
ai data centers are leading the race for energy consumption. ai–bitcoin-Face-Off-in-Energy-Race.html” target=”_blank” rel=”noopener nofollow”>Projects that require a lot of energy They are projected to consume between 85 and 134 TWh of electricity per year by 2027. This is roughly equal to the annual energy consumption of Norway or Sweden and demonstrates the enormous amount of energy needed to run complex ai models like ChatGPT.
Each of these models runs on large server farms and to run ChatGPT for each search performed by ai?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcxOTk1NTI2NSwiZXhwIjoxNzIwNTYwMDY1LCJhcnRpY2xlSWQiOiJTRzBMRFFUMEFGQjQwMCIsImJjb25uZWN0SWQiOiIyMjNDRDM2NDg0QzY0OTc3QjY5ODE0Rjc1MTYxNDRGNyJ9.lmp1bBJSE-nTFDkQax2z0TS9R8SzkzvJEmKNBItQD0o” target=”_blank” rel=”noopener nofollow”>GoogleThe number needed is estimated to be more than 500,000 servers, with an estimated consumption of around 29.2 TWh per year.
bitcoin mining is estimated to use 120 TWh of energy per year. bitcoin mining consumed 0.4% of the world's electricity last year, which is a huge figure. Analysts expect ai to surpass bitcoin miners in energy demand by 2027, with 20% of its energy capacity being transferred to ai.
Competing for resources
With the growth of both ai-vs-cryptocurrency-mining-power-use-and-efficiency/” target=”_blank” rel=”noopener nofollow”>ai and bitcoin Miningare increasingly competing for some of the same energy resources. Competition is on the rise, with big tech companies like amazon and Microsoft aggressively pursuing energy assets that, until recently, had been controlled by cryptocurrency miners.
Competition is intensifying: for some mining operators, money is made by leasing and selling energy infrastructure, while for others, the risk of losing access to the electricity that keeps them in business becomes a reality.
This is creating such a frantic scramble for energy that data centers are expected to consume up to 9% of all U.S. electricity by the end of the decade, more than double their current consumption.
Interestingly, while cryptocurrency mining relies more on renewable energy sources (as it sources approximately 70% of its energy consumption from green sources), ai data centers rely primarily on fossil fuels.
Image: AsianInvestor
This therefore presents disparities in opinions on the sustainability of both technologies. As demand for ai continues to grow, tech companies are weighing their carbon footprint against other alternative sources, including nuclear power.
The road ahead
The future of energy consumption in the technology industry is very unpredictable. While ai continues to push the boundaries, its technology/artificial-intelligence/ais-race-us-energy-butts-up-against-bitcoin-mining-2024-08-28/” target=”_blank” rel=”noopener nofollow”>energy appetite will experience a corresponding increase, and unless efficiency begins to radically outpace growth, the environmental consequences will undoubtedly be dire.
According to the International Energy Agency, the combined energy consumption of ai and bitcoin mining would increase to 1,050 TWh by 2026 – an amount of electricity needed for an entire country.
But one question will always remain, as with most high-stakes energy races: can ai and bitcoin mining coexist, i.e. not suck up all of the planet's resources?
How this can be achieved depends on the ability of these industries to innovate and adapt to the rising tide of sustainable energy solutions. In their race for energy, the future of technology and the environment hangs in the balance.
Featured image by Ken O./LinkedIn, chart by TradingView
