From nuclear to quantum computing, how Big Tech intends to power AI’s insatiable thirst for energy
Industrial chiller at Yotta Data Services Pvt. data center, in Navi Mumbai, India, on Thursday, Mar. 14, 2024.
Bloomberg | Bloomberg | Getty Images
A huge upswing in the number of data centers worldwide shows no signs of slowing down, prompting Big Tech to consider how best to power the artificial intelligence revolution.
Some of the options on the table include a pivot to nuclear, liquid cooling for data centers and quantum computing.
Critics, however, have said that as the pace of efficiency gains in electricity use slows, tech giants should recognize the cost of the generative AI boom across the whole supply chain — and let go of the “move fast and break things” narrative.
“The actual environmental cost is quite hidden at the moment. It is just subsidized by the fact that tech companies need to get a product and a buy-in,” Somya Joshi, head of division: global agendas, climate and systems at the Stockholm Environment Institute (SEI), told CNBC via video call.
A wave of data center investment is expected to accelerate even further in the coming years, according to the International Energy Agency, primarily driven by growing digitalization and the uptake of generative AI.
It is this prospect that has stoked concerns about an electricity demand surge — as well as AI’s often-overlooked but critically important environmental impact.
Data centers, which consume an ever-increasing amount of energy, represent a key piece of infrastructure behind modern-day cloud computing and AI applications.
Giampiero Frisio, president of electrification at Swiss multinational ABB, said the engineering group’s data center business has enjoyed remarkable growth in recent years — with the segment on track to grow by more than 24% in 2024.
Frisio said ABB has been well placed in the AI demand boom to supply mid-sized and big-name industry players with all the components needed to run a data center.
“I think the best way to act now is to increase the energy efficiency. That’s the best way because the technology is there, for example the medium voltage HiPerGuard UPS. You can do it, and you can do it tomorrow morning,” Frisio told CNBC via video call.
The HiPerGuard UPS refers to ABB’s industry-first medium voltage uninterruptable power supply, which it says can provide continuous power to large facilities.
A server room at a data center in India.
Dhiraj Singh | Bloomberg | Getty Images
“The second one is to move on the liquid cooling, there is no doubt. Again, this is in the optic of better energy efficiency. Why? Because a single rack, you know the black boxes that look like a wardrobe with all the servers inside, the power density of those is going to be four to six times than before,” Frisio said.
“After that, we are talking about five to 10 years from now, it is the nuclear modular system,” he added.
Big Tech is going nuclear
U.S. tech behemoths Microsoft, Google and Amazon have all secured nuclear energy deals worth billions of dollars in recent months as they seek to bring additional energy capacity online to train and run the massive generative AI models behind today’s applications.
The upsurge of generative AI demand has coincided with a push to find more efficient cooling solutions in data centers, particularly liquid cooling — a process in which water is used to lower the temperatures of servers and other electronic equipment.
I think in the summer of every great technology we discover there is a winter — but don’t pay attention to it until winter arrives.
Raj Hazra
CEO of Quantinuum
French power-equipment maker Schneider Electric recently completed an $850 million deal to take a controlling stake in Motivair Corp, a U.S.-based company that specializes in liquid cooling for high-performance computing.
Schneider Electric CEO Peter Herweck told CNBC last month that the all-cash deal, which is designed to bolster its offering to data centers, was “rich, but not overly expensive” and “fits great” with the firm’s strategy.
Alongside nuclear energy and liquid cooling technology, some tech players have suggested developments within AI could help to decarbonize data centers.
Former Google CEO Eric Schmidt, for example, said last month that since “we’re not going to hit the climate goals anyway”, investing in AI could be pivotal to solving some of our biggest environmental challenges.
SEI’s Joshi flatly rejected this point of view.
“These arguments are not new, they are very much in line with the sort of ‘silver bullet’, ‘tech will save us’ rhetoric,” Joshi said.
“There is something inherently at odds with saying we operate within certain finite planetary boundaries and yet by exceeding them and continuing with the same extractive narratives, we are somehow going to solve the problem that we’re in now,” she added.
Quantum computing
“I think in the summer of every great technology we discover there is a winter — but don’t pay attention to it until winter arrives,” Raj Hazra, CEO of Quantinuum, the world’s largest integrated quantum computing company, told CNBC via video call.
“That is my way of describing what is happening with generative AI, the infrastructure needed to support it [and] the massive data centers that have to be built.”
Hazra said optimism over the generative AI boom is already straining the cost of running the technology.
Aerial view of a data center owned by the US multinational and technology company Google in Santiago on October 9, 2024. The drought that is affecting part of South America, coupled with public pressure, is forcing technology giants such as Google, Amazon, and Microsoft to reformulate their data center projects in the region in favor of low-water consumption ones.
Rodrigo Arangua | Afp | Getty Images
“As wonderful as AI is, there are two challenges to it. One is, is it sustainable from a resource standpoint? The other is, is it responsible?” Hazra said. “The reason I bring up this context is because quantum is critical to both of them.”
Quantum computing refers to an area of computer science that uses the laws of quantum mechanics to solve extremely complex problems.
Hazra said a “who’s who” of businesses and strategic investors have recently expressed an interest in Quantinuum, with the company raising around $300 million in its latest equity funding round. Honeywell, which is the firm’s majority shareholder, said the fundraise put Quantinuum’s valuation at $5 billion.
“One of the things that has become quite apparent is it’s no longer OK to say I have a solution to a problem; you have to say I have a sustainable solution to a problem,” Hazra said.
The CEO said one of quantum’s biggest contributions to society can be to make AI both sustainable and responsible.
“I predict that in the next three to five years, you will see people say, what is my compute infrastructure for running my business? It will be a combination of high-performance computing, AI and quantum,” he added.
Environment
Eve Energy rolls solid-state batteries off new assembly line to power humanoids, flying cars
What a headline and what a future evolving before our eyes. Chinese battery expert EVE Energy inaugurated a new production base yesterday, and to celebrate the feat, rolled one of its new all-solid-state batteries off the production line.
EVE Energy Co., Ltd. is a Chinese battery manufacturer approaching 25 years in the industry. It develops, manufactures, and delivers lithium-ion batteries and energy storage systems to OEMs around the world.
The company’s current production footprint includes facilities in at least four regions of China, in addition to a plant in Malaysia and Hungary. In 2021, EVE shared plans to erect a new lithium-ion battery research and development center and manufacturing plant in Chengdu, in the Sichuan region of southwest China.
Since then, EVE Energy has made impressive strides beyond traditional lithium-ion cells and into highly coveted all-solid-state technology. Yesterday, EVE Energy officially opened its new solid-state battery production base in Chengdu and even produced one of its new “Longquan II” cells (pictured above).
EVE to build 500k solid-state cells per year in Chengdu
EVE Energy shared details of yesterday’s solid-state production base inauguration in a release today. The new 11,000-square-meter (118,400-square-foot) facility in Chengdu is officially open, but will continue development and expansion through 2026.
As initially announced in 2021, EVE Energy’s Chengdu facility will be constructed in two phases – the first of which is expected to be completed in December. Phase one will offer the capacity to manufacture 60-Ah batteries and EVE’s “Longquan II” solid-state cells – the first of which rolled off the production line yesterday.
The Longquan II is a 10-Ah all-solid-state cell with an energy density of up to 300 Wh/kg. Per EVE Energy, mass production of these ultra-dense cells will eventually power humanoid robots, uncrewed aerial vehicles, and AI equipment.
At its new Chengdu base, EVE has already vowed to fully commit funding, equipment, and R&D resources to achieve an energy density of 400 Wh/kg by 2025. The company also stated that this week’s production launch of the Longquan series “marks a crucial step forward for Eve Energy in solid-state battery industrialization.”
Following phase one’s completion by year’s end, EVE said phase two will bolster the facility’s annual production capacity to 500,000 cells, equating to 100 MWh by December 2026.
There was no mention of any specific solid-state cells developed for electric vehicles. Still, EVE Energy is inching toward mass production of the technology while producing higher energy densities to support automotive OEMs, perhaps one day.
Last year, Zhao Ruirui, executive vice president of EVE Energy’s research institute, shared plans to launch all-solid-state batteries for Chinese passenger cars in 2026, beginning with hybrid EVs.
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It’s official. Volkswagen is shaking up its EV naming strategy. After confirming the ID.2 will launch as the ID.Polo, Volkswagen promises its new family of entry-level EVs “will make electric driving more affordable than ever.” The ID.Polo is just the start with an electric T-Cross and much more coming soon.
Meet the Volkswagen ID.Polo
Volkswagen is reviving some of its most popular nameplates for its next-generation electric vehicles. Starting with the ID.Polo next year, Volkswagen will begin transferring names from ICE models to its new family of EVs.
The all-electric ID.Polo “is just the beginning,” according to Thomas Schäfer, VW brand CEO. As the production version of the ID.2all concept from 2023, the 25,000 euro ($29,000) entry-level electric car, the Polo EV, is expected to be a cornerstone of Volkswagen’s electrification strategy.
“A model like the Polo shows just how powerful a name can be,” Martin Sanders, Volkswagen’s sales boss, said, adding, “it stands for reliability, personality and history.”
The ID.Polo is just the start. Volkswagen has several new affordable EVs on the way, including the ID.Cross, an electric counterpart to the T-Cross.
Volkswagen said its new family of EVs marks the beginning of a new era, promising to make electric driving more affordable than ever.
The ID.Polo will evolve into an electric hot hatch, featuring a sporty GTI variant. Sanders said the ID.GTI Concept will go into production as the ID. Polo GTI, which is also launching next year. It will offer “outstanding dynamics and plenty of driving pleasure,” Sanders ensured.
Volkswagen will showcase the ID.Polo and ID.Polo GTI for the first time at the Munich Motor Show, starting on September 8.
The day before, September 7, Volkswagen will unveil the ID.Cross concept. It’s also slated to arrive in 2026 as the electric counterpart to its best-selling T-Cross SUV.
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Environment
Segway’s electric go-karts are joining forces with the world’s largest indoor karting chain
Segway just smashed the accelerator pedal on youth motorsports, teaming up with indoor karting giant K1 Speed in a new partnership that blends electric micromobility with high-octane (high-electron?) thrills and fun.
The collaboration will see Segway become the official sponsor of K1’s Junior and Teen Challenge GP leagues, while also putting Segway’s high-performance scooters and go-karts directly in front of the next generation of electric racing fans.
Segway will serve as the official sponsor of K1 Speed’s Junior and Teen Challenge GP leagues, a racing series that pits the best young go-kart racers against each other at K1 tracks across the country. Winners will even take home some fun prizes like the Segway GoKart Pro 2.
“Segway’s partnership with K1 Speed perfectly reflects our passion for performance, innovation, and inspiring the next generation of riders,” said Alex Connelly, head of emerging business development at Segway. “By bringing our products directly to K1 fans and powering the Junior and Teen Challenge GP leagues, we’re creating opportunities for more people to experience even more everyday thrills!”
K1 Speed operates over 100 locations across 30 states and 10 countries, all using fully electric go-karts, making this partnership a perfect alignment in both spirit and tech. “Segway’s incredible reputation as a front-runner in electric mobility aligns perfectly with our use of fully electric go-karts,” said K1 co-founder Susan Danglard.
The partnership also brings more access to Segway’s other micromobility products, such as their range of electric scooters that cover everything from commuting to high-performance riding. Segway’s most exciting electric vehicles, including the Max G3 e-scooter, F3 commuter scooter, GT3 performance scooter, and the GoKart Pro 2, are now available for purchase directly from K1’s website. That last one might be the most fun of all: the GoKart Pro 2 is a 3-in-1 electric vehicle that hits speeds of up to 27 mph (43 km/h), transforms into a self-balancing scooter, and even doubles as a racing simulator controller for PC gaming.
Oh, and yes… it’s designed for both kids and adults. So parents, don’t pretend you’re buying one just for the kids.
Electrek’s Take
We’ve seen branding deals before that are just that… all about branding. But this feels like much more than just a cross-promo play. It’s a real look at how electric mobility brands can build cultural relevance with young riders early – and maybe even help grow the next generation of e-racing pros while they’re at it.
By getting kids and teens into EVs, without the focus being on the EV itself, it helps cement the idea that these aren’t some new alternatives… they’re just the best way to build transportation devices, whether it’s for commuting, adventuring, or just plain fun racing!
K1’s electric karts are a bit faster than Segway’s, but they’re also built to be abused all day, every day. That Segway kart looks pretty fun for a personal option!
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