How Electric Utilities Will Handle Booming AI Datacenter Demand
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The Shift of Big Tech Companies Towards Energy Focus
Big tech companies, such as Microsoft, have shifted their focus towards energy due to the integral role it plays in their operations. Initially, the importance of energy was underestimated, but over time, it became central to everything the business does. As tech companies transitioned to cloud services and AI, they realized the significance of power in their operations. The strategic placement of data centers evolved from being close to network hubs to being near customers, leading to rapid expansion in data center regions globally. The development of advanced AI technologies, like GPT-3, highlighted the need for increased power capabilities in tech operations. This contrasted with the slow pace of innovation in the utility industry, raising concerns about the industry's ability to match the rapid technological advancements in tech companies.
