Artificial intelligence advancements rely on energy-intensive operations, with developing countries incurring significant energy costs.
In the modern world, the hum of generators has become a constant soundtrack, a testament to the critical role electricity plays in powering our digital marketing dreams. This is particularly true in countries like Querétaro, Mexico, which currently consumes 200 MW of electricity, accounting for 80% of the national load. However, demand for electricity in Querétaro could triple by 2030, raising concerns about the transmission and distribution infrastructure.
Across the globe, the digital ambition is sprinting, while physical infrastructure is jogging behind, creating a gap between marketing and megawatts. This disparity is evident in South Africa, where Amazon Web Services (AWS) is expanding amidst rolling blackouts. Similarly, in Lagos, Nigeria, generators are the default source of electricity, powering households, businesses, and data centers. The city runs on an estimated 4.5 million generators, emitting 39 MtCO2e annually.
In an effort to address these challenges, Mexico has attracted $7 billion in data-center investment since 2020. The state utility has promised $8.2 billion in transmission upgrades. Notably, the Microsoft data center in Colon, Mexico, operates on seven massive gas generators, burning gas for up to 12 hours daily. Despite this, the center will not be fully plugged into Mexico's grid until 2027.
Elsewhere, countries like Hungary and Vietnam are planning for their digital futures. By 2030, both nations aim to realize their digital ambitions emphasizing digital infrastructure and transformation without reliance on traditional polluting power sources. The goal is to become advanced digital states and comprehensive digital fronts, respectively.
However, the transition towards renewable energy in data centers is a slow process. The International Energy Agency estimates that nearly 60% of data center electricity still comes from fossil fuels, while renewables cover only a quarter. Big Tech companies, such as Microsoft and Google, have pledged to be carbon negative or use 100% renewables, but the current reality falls short of these goals.
In Ireland, new connections have been capped due to the grid maxing out in Dublin. Kenya aspires to be East Africa's hub but cannot guarantee power outside Nairobi. The MTN Lekki Tier III data facility in Nigeria, built for 600 racks, heavily relied on diesel before switching to natural gas, reducing fuel costs by 40%.
The future of AI will be decided in the hum of generators, indicating a critical role for countries' ability to power their digital dreams without contributing to air pollution. As we move towards a more connected world, it is clear that addressing the infrastructure gap is essential to achieving a sustainable digital future.
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