The Valmy cover image

The Valmy

AI, data centers, and power economics, with Azeem Azhar

Mar 11, 2025
01:13:53
Podcast: Complex Systems with Patrick McKenzie (patio11)
Episode: AI, data centers, and power economics, with Azeem Azhar
Release date: 2025-02-27

Get Podcast Transcript →
powered by Listen411 - fast audio-to-text and summarization


Patrick McKenzie (patio11) is joined by Azeem Azhar, writer of the Exponential View newsletter, to discuss the massive data center buildout powering AI and its implications for our energy infrastructure. The conversation covers the physical limitations of modern datacenters, the challenges of electricity generation, the societal ripples from historical largescale infrastructure investments like railways and telecommunications, and the future of energy including solar, nuclear and geothermal power. Through their discussion, Patrick and Azeem explain why our mental models for both computing and energy systems need to be updated.

Full transcript available here: www.complexsystemspodcast.com/ai-llm-data-center-power-economics/


Sponsors:  Safebase | Check

Ready to save time and close deals faster? Inbound security reviews shouldn’t slow down your team or your sales cycle. Leading companies use SafeBase to eliminate up to 98% of inbound security questionnaires, automate workflows, and accelerate pipeline. Go to safebase.io/podcast

Check is the leading payroll infrastructure provider and pioneer of embedded payroll. Check makes it easy for any SaaS platform to build a payroll business, and already powers 60+ popular platforms. Head to checkhq.com/complex and tell them patio11 sent you.

Recommended in this episode:

Twitter:

@azeem

@patio11

Timestamps:

(00:00) Intro 

(00:27) The power economics of data centers

(01:12) Historical infrastructure rollouts

(04:58) The telecoms bubble 

(06:22) Unprecedented enterprise spend on AI capabilities

(11:12) Let's have your LLM talk to my LLM

(16:44) Is there a saturation point?

(19:25) Sponsors: Safebase | Check

(21:55) What’s in a data center?

(24:52) The challenges of data centers

(29:40) Geographical considerations for data centers

(36:53) Energy consumption and future needs

(40:48) Challenges in building transmission lines

(41:35) The solar power learning curve

(43:51) Small modular nuclear reactors

(51:26) Geothermal energy and fracking

(01:01:34) The future of AI and energy systems

(01:12:57) Wrap



Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode