The article Data centers: Green electricity significantly cheaper than nuclear power first appeared in the online magazine BASIC thinking. With our newsletter UPDATE you can start the day well informed every morning.
AI models required data centers with gigantic power requirements. To cover this, many companies rely on nuclear power. But renewable energies are apparently significantly cheaper and more effective.
Due to the current AI hype, more and more data centers are springing up to train and operate chatbots and the like. But: How should the gigantic electricity requirements of artificial intelligence be covered?
Many operators are toying with so-called Small Modular Reactors (SMRs), i.e. small, modular nuclear reactors, in order to operate their servers directly on site. But a new study comes to the conclusion: Renewable energies are much cheaper and more useful.
Because analysts from the British Center for Net Zero (CNZ) have found that the combination of wind and solar energy in combination with batteries and a gas backup is a whopping 43 percent cheaper to operate annually than a small nuclear reactor.
Green electricity for data centers: The wind-solar-battery secret
The CNZ study took a large data center with 120 megawatts of consumption as an example and ran through two scenarios. The researchers found that renewable energies can cover 80 percent of the constant electricity requirements of such a data center over the year in the optimal mix. The rest is provided by gas generators supported by battery storage when wind and solar are not available.
The special thing is that energy is not only cheaper, but also available more quickly. The researchers estimate that such a microgrid system could be operational in about five years. In contrast, SMRs are unlikely to become widely available until the next decade.
If the AI industry wants to satisfy its hunger for energy quickly, the solution is clear. It lies in proven green electricity technologies, not in the still largely theoretical next-generation nuclear power.
An explosive conclusion
The limitation is that the researchers primarily looked at the British sector, where energy costs are generally very high. But the main message is universal. Renewable energy offers a cost-competitive and, above all, immediately available solution to the massive new energy demands brought about by the AI sector.
The researchers emphasize that over time the cost of battery storage will continue to fall. This would further reduce dependence on gas. The findings provide a strong argument that the combination of wind, solar and storage is the fastest, greenest and cheapest way to power the new AI data centers. Anyone who relies on SMRs now could risk losing a lot of money and, above all, time.
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As a Tech Industry expert, I believe that the shift towards using green electricity in data centers is not only beneficial for the environment but also for cost savings. Green electricity, such as solar or wind power, is becoming increasingly cheaper and more accessible, making it a more cost-effective option compared to traditional sources of energy like nuclear power. By transitioning to green electricity, data centers can reduce their carbon footprint and operating costs simultaneously.
Furthermore, the increasing availability of renewable energy sources allows data centers to be more sustainable and align with corporate social responsibility goals. Investing in green electricity not only helps data centers reduce their environmental impact but also positions them as leaders in the industry in terms of sustainability and innovation.
Overall, I believe that data centers should consider transitioning to green electricity as a strategic decision that not only benefits the environment but also their bottom line. By embracing renewable energy sources, data centers can create a more sustainable and cost-effective operation while also setting a positive example for the industry as a whole.
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