Power Consumption of AI Industry

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The power demand of the AI industry is expected to increase significantly in the upcoming years. The International Energy Agency estimates that the industry will consume at least 10 times more power by 2026 compared to 2023. This escalated demand is primarily driven by generative AI systems which require massive amounts of energy due to the processing of large data volumes. The energy-intensive nature of these systems necessitates vast amounts of power, raising concerns about how data centers powering AI will be integrated into the existing electric grid.

Iran is exporting more oil than at any time for the past six years, EU leaders are debating whether to unify the bloc’s fragmented capital markets, and the IMF warns that the US’s massive fiscal deficit poses significant risks to global markets. Plus, artificial intelligence needs an abundance of electricity to run, but the world is struggling to generate it.

Mentioned in this podcast:

Iran oil exports hit 6-year high as west prepares sanctions

Majority of EU states object to capital markets reform push

US deficit poses ‘significant risks’ to global economy, warns IMF

Booming AI demand threatens global electricity supply

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Cara Shillenn, Denise Guerra, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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