Commercial, Energy Efficiency, GHG Emissions - December 11, 2024
KPMG: AI Demand Increases Need for Energy
The current pace of energy deployment in the U.S. is not enough to meet the energy demand caused by an increase in the use of AI, according to a new survey from KPMG LLP, the U.S. audit, tax and advisory firm.
Nearly 60% of global tech companies, data center developers and energy providers do not believe the current amount of power in the U.S. is sufficient for the increasing needs due to AI growth, ongoing transitions to the cloud and computational power.
KPMG’s data shows that hyperscalers/data center developers, electric producers/utilities and engineering construction companies are committed to building infrastructure that can keep up with high demand for data centers. In fact, 55% of hyperscalers/data center developers are willing to pay up to 50% more of their current expenditures on electricity costs to expand capacity.
The data also shows little consensus among respondents on the right path to ensuring secure energy supply, whether through energy service agreements, onsite generation, joint ventures or other plans.
“There will not be one path followed nor one single energy source to meet data centers’ growing energy demand,” said KPMG Global and U.S. Technology, Media & Telecommunications Leader Mark Gibson, in a statement. “Solving for these tensions – leveraging both tech’s capital and the institutional knowledge and relationships of the energy providers – can be a net-positive for hyperscalers, energy companies, and consumers alike.”
Respondents are bullish on a future with multiple energy sources and less clear on whether nuclear will play a role.
The survey found 94% of respondents are implementing some form of carbon mitigation efforts for their data centers, but 60% indicate they are still likely or somewhat likely to delay sustainability targets due to increasing energy demands of data centers.
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