A recent International Energy Agency report reveals that global spending on data centers will reach $580 billion in 2023, surpassing expenditures on new oil supply by $40 billion. This shift highlights the increasing significance of digital infrastructure, particularly as generative AI raises concerns about climate change. TechCrunch’s Equity podcast discusses the energy demands posed by new data centers, primarily situated near urban populations, straining electrical grids. However, the potential for renewable energy sources, like solar, presents opportunities for startups in clean tech. Major players like OpenAI and Meta are committing substantial funds—$1.4 trillion and $600 billion respectively—toward building data centers. Companies like Redwood Materials are innovating around microgrids using old EV batteries, addressing energy challenges. As these ambitious plans unfold, the role of government support and tax incentives in facilitating the construction of these facilities becomes increasingly critical to alleviate electrical grid pressures and foster sustainable development in the tech sector.
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