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AI computing is on pace to consume more energy than India, Arm predicts | Insights | Bloomberg Professional Services

May 05, 2024 - bloomberg.com
Arm Holdings Plc CEO, Rene Haas, has warned that the increasing demand for computing power by AI could potentially overwhelm energy sources, necessitating a change in the industry's approach to the technology. By 2030, it is projected that the world's data centers could consume more electricity than India, the world's most populous country. Haas emphasizes the need to find solutions to this projected tripling of energy use for AI to fulfill its potential.

Haas suggests that the industry should shift towards Arm chip designs, which are more energy-efficient than traditional server chips. Companies like Amazon.com Inc.'s AWS, Microsoft Corp., and Alphabet Inc. are already using Arm's technology in their server farms, reducing their reliance on parts made by Intel Corp. and Advanced Micro Devices Inc. According to Haas, this strategy could reduce data center power consumption by over 15%.

Key takeaways:

  • AI's increasing demand for computing power is threatening to surpass energy sources, necessitating a change in the industry's approach to technology, says Arm Holdings CEO Rene Haas.
  • By 2030, the world's data centers are projected to use more electricity than India, the world's most populous country.
  • Haas suggests that the industry should shift more towards Arm chips designs, which are more energy efficient than traditional server chips.
  • By using more custom-built chips, companies can reduce bottlenecks and save energy, potentially reducing data center power by more than 15%.
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