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Geothermal Energy: Big Tech’s Solution to the Rising Energy Demands of AI

by Krystal

Silicon Valley’s biggest tech giants, once leading the charge for clean energy, are now facing a major challenge: their own energy consumption is skyrocketing, driven by the explosive growth of artificial intelligence (AI). For years, companies like Google, Meta, Microsoft, and OpenAI have been vocal supporters of renewable energy investments. However, as AI’s energy needs soar, these companies are struggling to meet their ambitious decarbonization targets.

Google’s 2024 Environmental Report shows that the company’s greenhouse gas emissions have jumped nearly 50% since 2019, largely due to the surge in AI operations. This shift has led Google to acknowledge that its goal of achieving net-zero emissions by 2030 is becoming increasingly difficult, if not unattainable.

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AI services require far more computing power—and therefore electricity—than traditional online activities. A recent report from the BBC highlighted this growing concern, noting that each AI-powered query, like a Google search using AI, consumes about ten times more energy than a standard search. A study from Cornell University also revealed that generative AI systems like ChatGPT use up to 33 times more energy than conventional computers running specialized tasks.

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This growing energy demand is doubling approximately every 100 days, with some experts projecting that AI could account for 3.5% of global energy consumption by 2030. “It’s staggering,” said Jason Shaw, chairman of Georgia’s Public Service Commission. “It makes you scratch your head and wonder how we ended up in this situation.”

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To address this rapidly rising demand, Big Tech companies are increasingly turning to new and less explored clean energy alternatives, such as nuclear fusion, nuclear fission, and geothermal energy. Geothermal energy, once considered a niche option, is now gaining traction thanks to advancements in drilling technology derived from the fracking industry. Companies like Meta and Alphabet are now partnering with geothermal startups to power their data centers.

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Geothermal energy offers the potential for almost limitless clean power with relatively low operating costs. However, the upfront investment in geothermal infrastructure remains a significant hurdle. “The initial enthusiasm has waned due to the high development costs,” Reuters reported. Since 2020, analysts estimate that around $700 million has been invested in geothermal projects.

The outlook for geothermal energy is also clouded by the ongoing natural gas boom. With the oil industry ramping up its production and the upcoming presidential administration expected to support the sector, new geothermal projects could face a tough financial environment. As a result, it may be challenging for these renewable projects to compete with the well-established natural gas market.

As tech giants continue to pursue green energy solutions, the scale of the challenge posed by AI’s energy demands highlights the complex balance between innovation and sustainability.

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