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Powering the AI revolution
- Developers from renewable energy and data center markets are collaborating to meet increasing energy demands driven by the AI boom.
- Global data centers consume around 55 GW of electricity, expected to rise by 165% by 2030 due to AI advancements.
- Renewables are predicted to be the primary energy source for data centers, surpassing natural gas as stated by Nextracker's CEO.
- Data centers currently rely on grid power, with renewables contributing intermittently towards their electricity needs.
- Hyperscale data centers aim for proximity to renewables to claim using clean energy directly, aligning with sustainability goals.
- Major tech companies like Microsoft and Google are committed to running data centers on 24/7 carbon-free energy by the end of the decade.
- Renewables companies target markets like data centers through power purchase agreements (PPAs) to meet sustainability commitments.
- Different data centers have varying energy needs; hyperscale centers prioritize integrating AI-optimized clean energy, while edge data centers focus on local renewable solutions.
- Co-location of data centers and renewable energy generation can be beneficial, but renewable energy's availability in different locations is a challenge.
- Renewables developers are urged to tailor solutions to meet data center requirements, such as 24/7 energy matching and integrated storage, presenting lucrative opportunities.
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