According to BlackRock CEO Larry Fink, the infrastructure for increasing electricity demand through artificial intelligence will require the involvement of private investors. “These AI data centers will require more energy than we ever imagined,” Fink said via video link at the meeting of the B7 economic group in Rome on Friday. “We don’t have enough electricity in the G7,” he added, referring to the seven leading industrialized countries.
According to Fink, “trillions of dollars” would be needed. This is an opportunity for pension funds and insurers. According to Fink, BlackRock is in discussions with various governments about financing options for the expansion of AI. The power supply is the most pressing problem. “This will pose a real competitive challenge for the countries,” he continued.
“Burden for our children”
Data centers would likely be built where electricity supply is cheaper. This requires government subsidies for areas where energy costs are not competitive. “The shortages we see in the G7 are becoming a burden on my children, your children and our grandchildren.”
Huge energy requirements
The emerging AI technology brings with it the hope of a global increase in productivity. However, this requires data centers and semiconductor factories that consume enormous amounts of electricity. Japan predicted earlier this week that it would need to produce between 35 and 50 percent more electricity by 2050 to power the AI industry’s chip factories and data centers.
According to a government report, up to 1.5 trillion kilowatt hours (kWh) would have to be produced. This must be managed by restarting nuclear power plants, innovative solar panels with perovskite technology and offshore wind farms.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
