- Demand for electricity is now growing faster than energy suppliers can keep up
- Volatile AI workloads cause unpredictable peaks and valleys in demand
- AI might actually help predict, although it also causes it
While three in four (77%) power industry executives now believe data center energy demand will increase faster than utilities can keep up, two-thirds (68%) expect power shortages to become more common as demand for AI increases.
New data from a Capgemini report reveals how unpredictable AI energy demand can be, with 77% of respondents admitting they struggle to accurately forecast demand amid volatile AI workloads.
This leads not only to more limited energy supply, but also to more extreme and less predictable peaks in demand.
Data center energy demand is a whole new ball game
All of this comes as local opposition continues to mount against data centers, with residents increasingly concerned about power outages and rising energy costs. Last week, a Virginia county asked data centers to use backup generators to free up grid capacity for local residents as the ongoing heat wave caused a surge in electricity demand for air conditioning units.
Even data center companies are struggling to anticipate how much they might consume, with 67% of power executives reporting speculative demands for future capacity. About a fifth (19%) of these demands don’t even materialize, creating what Capgemini calls “phantom demand,” forcing utilities to unnecessarily overinvest or underinvest and create capacity shortages.
“The challenge is no longer just how much energy is needed, but also whether it can be delivered reliably, where and when it is needed,” wrote Claire Gauthier, Capgemini’s global head of energy and utilities, citing AI’s potential to help predict demand, although it also causes fluctuating and high demand. However, currently, less than half (45%) use AI to optimize the network.
Looking ahead, most (87%) data center operators expect electricity consumption to increase by an average of 30% over the next three to five years.
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