Why the Parts and Properties Powering the AI Boom Are in Short Supply
Apr 24, 2024
12:19
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Exploring the shortage of key elements needed for data centers powering AI boom. Startup Exowatt raises millions for solar energy solution. Challenges in competitive landscape for data centers. Navigating shortages of critical parts for AI development.
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Quick takeaways
Shortage of key components like cooling systems and power capacity is delaying the construction of data centers for AI technology.
ExoWAT utilizes solar power and heat battery modules to provide clean and reliable electricity to data centers, addressing the urgent demand.
Deep dives
ExoWAT's Clean Energy Approach to Power AI Data Centers
ExoWAT, a new clean energy startup, received significant funding from investors like Sam Altman and Andreece & Horowitz. The company focuses on utilizing solar power to supply electricity specifically to big data centers powering AI, addressing the urgent demand for electricity in the AI industry. A notable aspect of ExoWAT's approach is the combination of solar energy absorption with a heat battery module, aiming to reduce costs and provide reliable clean energy for data centers.
Challenges and Competitors in ExoWAT's Field
ExoWAT faces tough competition in its field, particularly from startups like Antora Energy and Rondo Energy that are also working on heat batteries. The urgency in providing clean and affordable electricity to power data centers has led to a competitive landscape with various innovative technologies. With a focus on domestic manufacturing and potential government subsidies, ExoWAT aims to establish itself as a key player in the clean energy sector.
Supply Shortages Impacting Data Center Expansion for AI
The rapid growth in demand for AI technology has led to the construction of new data centers every three days, resulting in shortages of key components like cooling systems, cables, real estate, and power capacity. Companies building these data centers are facing delays due to the scarcity of necessary resources, impacting project timelines and budgets. To address these challenges, companies are adopting resourceful strategies and hoping for a gradual improvement in the supply chain to support the expansion of AI technology in the future.
As the demand for artificial intelligence grows, so does the need for more facilities to power it—namely, data centers. Data centers can take years to build because they require particular conditions, including cooling centers, ample electricity and real estate. Now, because of the AI boom, there’s a shortage of some of the key elements that data centers need. WSJ reporter Tom Dotan tells host Alex Ossola about what this means for the future of AI. Plus, startup Exowatt was created to power data centers via solar energy, and it’s already raised millions from investors. WSJ climate finance reporter Amrith Ramkumar talks about how the technology works.
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