Data Center and electricity demand has exploded, and doesn't plan on slowing down any time soon

Data Center electricity usage is SURGING with the recent boom for GPU power that AI and crypto mining are so reliant on. Lets look at the numbers and what is means for the renewables space:

The GPU power necessary to keep up with the AI boom has been increasing by 50% every quarter says SemiAnalysis. Along with the supply of electricity, AI has demanded an influx of transformers, generators, and GPUs among many other necessary equipment.

The IEA even predicts that by 2026 there will be 90 terra-watts of energy demand just from AI datacenters alone. Looking even further, datacenters are expected to jump from 500-600 TWh of power in present day, to just under 3,000 TWh of power by 2030. And to top it all off, this number was the median estimate, therefore data taken from SemiAnalysis, which covered 1,100 different North American datacenters, suggested a worst case scenario of just under 8,000 TWh of power consumed by datacenters by 2030!

In terms of investment, recently Blackstone put up $25 billion to build their own datacenters. AWS announced in February they are building 2 new datacenters worth $10 billion. And finally TSMC is investing $40 billion to build a datacenter site in Arizona.

Looking at this by percentage points, the current CAGR for datacenter power growth is 12-15% and is expected to increase to 25% in the next few years.

Major tech companies like Google, Microsoft, and Amazon are all apart of this revolution to grow AI and crypto. Datacenters stand as the pivotal piece to make that happen. At Innovo, we notice the drawbacks to consuming such large amounts of electricity and how it impacts the earth. As tech companies continue to explode in their datacenter investment, Innovo will make it efficient and easily accessible to offset their electricity usage through the purchasing of RECs. Through Innovo's platform any buyer or seller can originate, transfer, and retire RECs certified all through their relevant state registry.

Learn more from our sources click below:
1) https://www.semianalysis.com/p/ai-datacenter-energy-dilemma-race
2) https://www.datacenterknowledge.com/buildconstruction/new-data-center-developments-february-2024#close-modal
3) https://www.bloomberg.com/news/articles/2024-01-29/blackstone-is-building-a-25-billion-ai-data-center-empire?embedded-checkout=true