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‘Unlike Anything We've Seen': The Energy Industry is Counting on the AI Boom
‘Unlike Anything We've Seen': The Energy Industry is Counting on the AI Boom

Politico

time6 days ago

  • Business
  • Politico

‘Unlike Anything We've Seen': The Energy Industry is Counting on the AI Boom

'Load growth has been flat, basically flat, for 20 years or more in the U.S.,' said Tom Wilson, a grid expert at the Electric Power Research Institute, a think tank. 'And so the idea of load going up allows you, at the very highest level, to spread any sort of system-wide cost that should be allocated to the various players over a larger number of kilowatt-hours.' The broader uncertainty across the energy policy landscape helps explain why utilities are clinging to tech so fiercely now. And while tech may not have stuck its neck out particularly far on behalf of renewable tax credits, it's still going to be the power sector's best customer. The electric power industry's relative dispassion may also give it a valuable role in the continuing partisan battles over solar and wind power's reliability, as my colleague Nico Portuondo reported last month. When Senate Energy and Natural Resources Committee Chair Mike Lee (R-Utah) dinged renewables at a hearing on electricity demand, Jeff Tench, executive vice president at Vantage Data Centers, offered a mild corrective. 'Our observation and our requirement is for more electrons, and Vantage is relatively agnostic as to the source of those electrons,' he said. So far, data centers have only increased total U.S. power demand by a tiny amount (they make up roughly 4.4 percent of electricity use, which rose 2 percent overall last year). But the two industries' fates are already linked. When Chinese firm DeepSeek unveiled an AI model in January that it billed as 10 to 40 times cheaper and more efficient than U.S. models like ChatGPT, the stock of tech giants like NVIDIA and Oracle plummeted — as did that of power providers like Constellation, Vistra and GE Vernova. There are risks in a hidebound, tightly regulated industry like power, which is essentially physical in nature, hitching its wagon to mercurial tech. 'There is a scenario where utilities benefit from this,' said Michael Wara, director of Stanford University's climate and energy policy program. 'And there's also a scenario where they overplay their hand dramatically.' There are several ways utilities could do that. One is taking demand estimates at face value and overbuilding. The tech industry is famous for its ability to improve its efficiency — and, simultaneously, for its tendency to overstate the energy use of new widgets. Computing history is littered with laughable-in-retrospect claims, like the one about a Palm Pilot using as much electricity as a refrigerator. 'Nobody has any idea how much demand is going to be from AI in five years, and anyone who says that they know that is lying,' said Jonathan Koomey, a researcher who's devoted decades to debunking demand projections and coined Koomey's Law, which holds that computing energy efficiency doubles every 18 months. There are solutions, though. In Virginia, for example, where data centers make up a quarter of demand and are projected to quadruple again by 2040, Dominion Energy is requiring data centers commit to buying fixed amounts of power for 14 years, to protect against unexpected efficiencies.

Being polite to AI could be harmful to the environment
Being polite to AI could be harmful to the environment

7NEWS

time27-06-2025

  • Science
  • 7NEWS

Being polite to AI could be harmful to the environment

Whether it's answering work emails or drafting wedding vows, generative artificial intelligence tools have become a trusty copilot in many people's lives. ut a growing body of research shows that for every problem AI solves, hidden environmental costs are racking up. Each word in an AI prompt is broken down into clusters of numbers called 'token IDs' and sent to massive data centres — some larger than football fields — powered by coal or natural gas plants. There, stacks of large computers generate responses through dozens of rapid calculations. The whole process can take up to 10 times more energy to complete than a regular Google search, according to a frequently cited estimation by the Electric Power Research Institute. So, for each prompt you give AI, what's the damage? To find out, researchers in Germany tested 14 large language model (LLM) AI systems by asking them both free-response and multiple-choice questions. Complex questions produced up to six times more carbon dioxide emissions than questions with concise answers. In addition, 'smarter' LLMs with more reasoning abilities produced up to 50 times more carbon emissions than simpler systems to answer the same question, the study reported. 'This shows us the tradeoff between energy consumption and the accuracy of model performance,' Maximilian Dauner, a doctoral student at Hochschule München University of Applied Sciences and first author of the Frontiers in Communication study published Wednesday, said. Typically, these smarter, more energy intensive LLMs have tens of billions more parameters — the biases used for processing token IDs — than smaller, more concise models. 'You can think of it like a neural network in the brain. The more neuron connections, the more thinking you can do to answer a question,' Dauner said. What you can do to reduce your carbon footprint Complex questions require more energy in part because of the lengthy explanations many AI models are trained to provide, Dauner said. If you ask an AI chatbot to solve an algebra question for you, it may take you through the steps it took to find the answer, he said. 'AI expends a lot of energy being polite, especially if the user is polite, saying 'please' and 'thank you',' Dauner said. 'But this just makes their responses even longer, expending more energy to generate each word.' For this reason, Dauner suggests users be more straightforward when communicating with AI models. Specify the length of the answer you want and limit it to one or two sentences, or say you don't need an explanation at all. Most important, Dauner's study highlights that not all AI models are created equally, Sasha Luccioni, the climate lead at AI company Hugging Face, said. Users looking to reduce their carbon footprint can be more intentional about which model they chose for which task. 'Task-specific models are often much smaller and more efficient, and just as good at any context-specific task,' Luccioni said. If you are a software engineer who solves complex coding problems every day, an AI model suited for coding may be necessary. But for the average high school student who wants help with homework, relying on powerful AI tools is like using a nuclear-powered digital calculator. Even within the same AI company, different model offerings can vary in their reasoning power, so research what capabilities best suit your needs, Dauner said. When possible, Luccioni recommends going back to basic sources — online encyclopedias and phone calculators — to accomplish simple tasks. Why it's hard to measure AI's environmental impact Putting a number on the environmental impact of AI has proved challenging. The study noted that energy consumption can vary based on the user's proximity to local energy grids and the hardware used to run AI models. That's partly why the researchers chose to represent carbon emissions within a range, Dauner said. Furthermore, many AI companies don't share information about their energy consumption — or details like server size or optimisation techniques that could help researchers estimate energy consumption, Shaolei Ren, an associate professor of electrical and computer engineering at the University of California, Riverside who studies AI's water consumption, said. 'You can't really say AI consumes this much energy or water on average — that's just not meaningful. We need to look at each individual model and then (examine what it uses) for each task,' Ren said. One way AI companies could be more transparent is by disclosing the amount of carbon emissions associated with each prompt, Dauner suggested. 'Generally, if people were more informed about the average (environmental) cost of generating a response, people would maybe start thinking, 'Is it really necessary to turn myself into an action figure just because I'm bored?' Or 'do I have to tell ChatGPT jokes because I have nothing to do?'' Dauner said. Additionally, as more companies push to add generative AI tools to their systems, people may not have much choice how or when they use the technology, Luccioni said. 'We don't need generative AI in web search. Nobody asked for AI chatbots in (messaging apps) or on social media,' Luccioni said. 'This race to stuff them into every single existing technology is truly infuriating, since it comes with real consequences to our planet.' With less available information about AI's resource usage, consumers have less choice, Ren said, adding that regulatory pressures for more transparency are unlikely to the United States anytime soon. Instead, the best hope for more energy-efficient AI may lie in the cost efficacy of using less energy. 'Overall, I'm still positive about (the future). There are many software engineers working hard to improve resource efficiency,' Ren said. 'Other industries consume a lot of energy too, but it's not a reason to suggest AI's environmental impact is not a problem. 'We should definitely pay attention.'

Your AI prompts could have a hidden environmental cost
Your AI prompts could have a hidden environmental cost

CTV News

time23-06-2025

  • Science
  • CTV News

Your AI prompts could have a hidden environmental cost

Whether it's answering work emails or drafting wedding vows, generative artificial intelligence tools have become a trusty copilot in many people's lives. But a growing body of research shows that for every problem AI solves, hidden environmental costs are racking up. Each word in an AI prompt is broken down into clusters of numbers called 'token IDs' and sent to massive data centers — some larger than football fields — powered by coal or natural gas plants. There, stacks of large computers generate responses through dozens of rapid calculations. The whole process can take up to 10 times more energy to complete than a regular Google search, according to a frequently cited estimation by the Electric Power Research Institute. So, for each prompt you give AI, what's the damage? To find out, researchers in Germany tested 14 large language model (LLM) AI systems by asking them both free-response and multiple-choice questions. Complex questions produced up to six times more carbon dioxide emissions than questions with concise answers. In addition, 'smarter' LLMs with more reasoning abilities produced up to 50 times more carbon emissions than simpler systems to answer the same question, the study reported. 'This shows us the tradeoff between energy consumption and the accuracy of model performance,' said Maximilian Dauner, a doctoral student at Hochschule München University of Applied Sciences and first author of the Frontiers in Communication study published Wednesday. Typically, these smarter, more energy intensive LLMs have tens of billions more parameters — the biases used for processing token IDs — than smaller, more concise models. 'You can think of it like a neural network in the brain. The more neuron connections, the more thinking you can do to answer a question,' Dauner said. What you can do to reduce your carbon footprint Complex questions require more energy in part because of the lengthy explanations many AI models are trained to provide, Dauner said. If you ask an AI chatbot to solve an algebra question for you, it may take you through the steps it took to find the answer, he said. 'AI expends a lot of energy being polite, especially if the user is polite, saying 'please' and 'thank you,'' Dauner explained. 'But this just makes their responses even longer, expending more energy to generate each word.' For this reason, Dauner suggests users be more straightforward when communicating with AI models. Specify the length of the answer you want and limit it to one or two sentences, or say you don't need an explanation at all. Most important, Dauner's study highlights that not all AI models are created equally, said Sasha Luccioni, the climate lead at AI company Hugging Face, in an email. Users looking to reduce their carbon footprint can be more intentional about which model they chose for which task. 'Task-specific models are often much smaller and more efficient, and just as good at any context-specific task,' Luccioni explained. If you are a software engineer who solves complex coding problems every day, an AI model suited for coding may be necessary. But for the average high school student who wants help with homework, relying on powerful AI tools is like using a nuclear-powered digital calculator. Even within the same AI company, different model offerings can vary in their reasoning power, so research what capabilities best suit your needs, Dauner said. When possible, Luccioni recommends going back to basic sources — online encyclopedias and phone calculators — to accomplish simple tasks. Why it's hard to measure AI's environmental impact Putting a number on the environmental impact of AI has proved challenging. The study noted that energy consumption can vary based on the user's proximity to local energy grids and the hardware used to run AI partly why the researchers chose to represent carbon emissions within a range, Dauner said. Furthermore, many AI companies don't share information about their energy consumption — or details like server size or optimization techniques that could help researchers estimate energy consumption, said Shaolei Ren, an associate professor of electrical and computer engineering at the University of California, Riverside who studies AI's water consumption. 'You can't really say AI consumes this much energy or water on average — that's just not meaningful. We need to look at each individual model and then (examine what it uses) for each task,' Ren said. One way AI companies could be more transparent is by disclosing the amount of carbon emissions associated with each prompt, Dauner suggested. 'Generally, if people were more informed about the average (environmental) cost of generating a response, people would maybe start thinking, 'Is it really necessary to turn myself into an action figure just because I'm bored?' Or 'do I have to tell ChatGPT jokes because I have nothing to do?'' Dauner said. Additionally, as more companies push to add generative AI tools to their systems, people may not have much choice how or when they use the technology, Luccioni said. 'We don't need generative AI in web search. Nobody asked for AI chatbots in (messaging apps) or on social media,' Luccioni said. 'This race to stuff them into every single existing technology is truly infuriating, since it comes with real consequences to our planet.' With less available information about AI's resource usage, consumers have less choice, Ren said, adding that regulatory pressures for more transparency are unlikely to the United States anytime soon. Instead, the best hope for more energy-efficient AI may lie in the cost efficacy of using less energy. 'Overall, I'm still positive about (the future). There are many software engineers working hard to improve resource efficiency,' Ren said. 'Other industries consume a lot of energy too, but it's not a reason to suggest AI's environmental impact is not a problem. We should definitely pay attention.'

Your AI use could have a hidden environmental cost
Your AI use could have a hidden environmental cost

Yahoo

time22-06-2025

  • Science
  • Yahoo

Your AI use could have a hidden environmental cost

Sign up for CNN's Life, But Greener newsletter. Our limited newsletter series guides you on how to minimize your personal role in the climate crisis — and reduce your eco-anxiety. Whether it's answering work emails or drafting wedding vows, generative artificial intelligence tools have become a trusty copilot in many people's lives. But a growing body of research shows that for every problem AI solves, hidden environmental costs are racking up. Each word in an AI prompt is broken down into clusters of numbers called 'token IDs' and sent to massive data centers — some larger than football fields — powered by coal or natural gas plants. There, stacks of large computers generate responses through dozens of rapid calculations. The whole process can take up to 10 times more energy to complete than a regular Google search, according to a frequently cited estimation by the Electric Power Research Institute. So, for each prompt you give AI, what's the damage? To find out, researchers in Germany tested 14 large language model (LLM) AI systems by asking them both free-response and multiple-choice questions. Complex questions produced up to six times more carbon dioxide emissions than questions with concise answers. In addition, 'smarter' LLMs with more reasoning abilities produced up to 50 times more carbon emissions than simpler systems to answer the same question, the study reported. 'This shows us the tradeoff between energy consumption and the accuracy of model performance,' said Maximilian Dauner, a doctoral student at Hochschule München University of Applied Sciences and first author of the Frontiers in Communication study published Wednesday. Typically, these smarter, more energy intensive LLMs have tens of billions more parameters — the biases used for processing token IDs — than smaller, more concise models. 'You can think of it like a neural network in the brain. The more neuron connections, the more thinking you can do to answer a question,' Dauner said. Complex questions require more energy in part because of the lengthy explanations many AI models are trained to provide, Dauner said. If you ask an AI chatbot to solve an algebra question for you, it may take you through the steps it took to find the answer, he said. 'AI expends a lot of energy being polite, especially if the user is polite, saying 'please' and 'thank you,'' Dauner explained. 'But this just makes their responses even longer, expending more energy to generate each word.' For this reason, Dauner suggests users be more straightforward when communicating with AI models. Specify the length of the answer you want and limit it to one or two sentences, or say you don't need an explanation at all. Most important, Dauner's study highlights that not all AI models are created equally, said Sasha Luccioni, the climate lead at AI company Hugging Face, in an email. Users looking to reduce their carbon footprint can be more intentional about which model they chose for which task. 'Task-specific models are often much smaller and more efficient, and just as good at any context-specific task,' Luccioni explained. If you are a software engineer who solves complex coding problems every day, an AI model suited for coding may be necessary. But for the average high school student who wants help with homework, relying on powerful AI tools is like using a nuclear-powered digital calculator. Even within the same AI company, different model offerings can vary in their reasoning power, so research what capabilities best suit your needs, Dauner said. When possible, Luccioni recommends going back to basic sources — online encyclopedias and phone calculators — to accomplish simple tasks. Putting a number on the environmental impact of AI has proved challenging. The study noted that energy consumption can vary based on the user's proximity to local energy grids and the hardware used to run AI partly why the researchers chose to represent carbon emissions within a range, Dauner said. Furthermore, many AI companies don't share information about their energy consumption — or details like server size or optimization techniques that could help researchers estimate energy consumption, said Shaolei Ren, an associate professor of electrical and computer engineering at the University of California, Riverside who studies AI's water consumption. 'You can't really say AI consumes this much energy or water on average — that's just not meaningful. We need to look at each individual model and then (examine what it uses) for each task,' Ren said. One way AI companies could be more transparent is by disclosing the amount of carbon emissions associated with each prompt, Dauner suggested. 'Generally, if people were more informed about the average (environmental) cost of generating a response, people would maybe start thinking, 'Is it really necessary to turn myself into an action figure just because I'm bored?' Or 'do I have to tell ChatGPT jokes because I have nothing to do?'' Dauner said. Additionally, as more companies push to add generative AI tools to their systems, people may not have much choice how or when they use the technology, Luccioni said. 'We don't need generative AI in web search. Nobody asked for AI chatbots in (messaging apps) or on social media,' Luccioni said. 'This race to stuff them into every single existing technology is truly infuriating, since it comes with real consequences to our planet.' With less available information about AI's resource usage, consumers have less choice, Ren said, adding that regulatory pressures for more transparency are unlikely to the United States anytime soon. Instead, the best hope for more energy-efficient AI may lie in the cost efficacy of using less energy. 'Overall, I'm still positive about (the future). There are many software engineers working hard to improve resource efficiency,' Ren said. 'Other industries consume a lot of energy too, but it's not a reason to suggest AI's environmental impact is not a problem. We should definitely pay attention.'

How your AI prompts could harm the environment
How your AI prompts could harm the environment

CNN

time22-06-2025

  • Science
  • CNN

How your AI prompts could harm the environment

AI Sustainability Climate change EconomyFacebookTweetLink Follow Sign up for CNN's Life, But Greener newsletter. Our limited newsletter series guides you on how to minimize your personal role in the climate crisis — and reduce your eco-anxiety. Whether it's answering work emails or drafting wedding vows, generative artificial intelligence tools have become a trusty copilot in many people's lives. But a growing body of research shows that for every problem AI solves, hidden environmental costs are racking up. Each word in an AI prompt is broken down into clusters of numbers called 'token IDs' and sent to massive data centers — some larger than football fields — powered by coal or natural gas plants. There, stacks of large computers generate responses through dozens of rapid calculations. The whole process can take up to 10 times more energy to complete than a regular Google search, according to a frequently cited estimation by the Electric Power Research Institute. So, for each prompt you give AI, what's the damage? To find out, researchers in Germany tested 14 large language model (LLM) AI systems by asking them both free-response and multiple-choice questions. Complex questions produced up to six times more carbon dioxide emissions than questions with concise answers. In addition, 'smarter' LLMs with more reasoning abilities produced up to 50 times more carbon emissions than simpler systems to answer the same question, the study reported. 'This shows us the tradeoff between energy consumption and the accuracy of model performance,' said Maximilian Dauner, a doctoral student at Hochschule München University of Applied Sciences and first author of the Frontiers in Communication study published Wednesday. Typically, these smarter, more energy intensive LLMs have tens of billions more parameters — the biases used for processing token IDs — than smaller, more concise models. 'You can think of it like a neural network in the brain. The more neuron connections, the more thinking you can do to answer a question,' Dauner said. Complex questions require more energy in part because of the lengthy explanations many AI models are trained to provide, Dauner said. If you ask an AI chatbot to solve an algebra question for you, it may take you through the steps it took to find the answer, he said. 'AI expends a lot of energy being polite, especially if the user is polite, saying 'please' and 'thank you,'' Dauner explained. 'But this just makes their responses even longer, expending more energy to generate each word.' For this reason, Dauner suggests users be more straightforward when communicating with AI models. Specify the length of the answer you want and limit it to one or two sentences, or say you don't need an explanation at all. Most important, Dauner's study highlights that not all AI models are created equally, said Sasha Luccioni, the climate lead at AI company Hugging Face, in an email. Users looking to reduce their carbon footprint can be more intentional about which model they chose for which task. 'Task-specific models are often much smaller and more efficient, and just as good at any context-specific task,' Luccioni explained. If you are a software engineer who solves complex coding problems every day, an AI model suited for coding may be necessary. But for the average high school student who wants help with homework, relying on powerful AI tools is like using a nuclear-powered digital calculator. Even within the same AI company, different model offerings can vary in their reasoning power, so research what capabilities best suit your needs, Dauner said. When possible, Luccioni recommends going back to basic sources — online encyclopedias and phone calculators — to accomplish simple tasks. Putting a number on the environmental impact of AI has proved challenging. The study noted that energy consumption can vary based on the user's proximity to local energy grids and the hardware used to run AI partly why the researchers chose to represent carbon emissions within a range, Dauner said. Furthermore, many AI companies don't share information about their energy consumption — or details like server size or optimization techniques that could help researchers estimate energy consumption, said Shaolei Ren, an associate professor of electrical and computer engineering at the University of California, Riverside who studies AI's water consumption. 'You can't really say AI consumes this much energy or water on average — that's just not meaningful. We need to look at each individual model and then (examine what it uses) for each task,' Ren said. One way AI companies could be more transparent is by disclosing the amount of carbon emissions associated with each prompt, Dauner suggested. 'Generally, if people were more informed about the average (environmental) cost of generating a response, people would maybe start thinking, 'Is it really necessary to turn myself into an action figure just because I'm bored?' Or 'do I have to tell ChatGPT jokes because I have nothing to do?'' Dauner said. Additionally, as more companies push to add generative AI tools to their systems, people may not have much choice how or when they use the technology, Luccioni said. 'We don't need generative AI in web search. Nobody asked for AI chatbots in (messaging apps) or on social media,' Luccioni said. 'This race to stuff them into every single existing technology is truly infuriating, since it comes with real consequences to our planet.' With less available information about AI's resource usage, consumers have less choice, Ren said, adding that regulatory pressures for more transparency are unlikely to the United States anytime soon. Instead, the best hope for more energy-efficient AI may lie in the cost efficacy of using less energy. 'Overall, I'm still positive about (the future). There are many software engineers working hard to improve resource efficiency,' Ren said. 'Other industries consume a lot of energy too, but it's not a reason to suggest AI's environmental impact is not a problem. We should definitely pay attention.'

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