OpenAI’s Proposal to Build Massive Data Centers Raises Concerns.
OpenAI, the leading generative AI company, recently proposed to the U.S. government the construction of massive data centers that would require a staggering five gigawatts of power each. This bold proposal made by OpenAI CEO Sam Altman during a meeting at the White House has sparked discussions about the feasibility and environmental impact of such projects.
To put the scale of these proposed data centers into perspective, five gigawatts is equivalent to the power output of five nuclear reactors, enough to supply a major city like Miami. This power requirement is up to 100 times greater than that of a standard large data center. If OpenAI were to build seven such data centers, as reportedly suggested by Altman, their combined power consumption would be twice that of the entire state of New York, or equal to about one percent of the current entire global electricity consumption.
The motivation behind OpenAI’s push for these mega data centers is clear: to maintain its position as the leader in generative AI. As the technology continues to advance, the computing power required to develop and run these AI models will only increase. The proposed data centers, estimated to cost around $100 billion each, would house 2 million AI chips and consume the vast amounts of power necessary to operate them.
However, the feasibility of such projects has been met with skepticism from industry experts. Joe Dominguez, CEO of Constellation Energy, expressed doubt about the possibility of meeting these power demands, stating that it is “not only something that’s never been done, but I don’t believe it’s feasible as an engineer.” The spare capacity required to continuously power these data centers is simply not available in most power grids.
In addition to the technical challenges, the environmental impact of these proposed data centers has also come under scrutiny. Data centers not only require significant amounts of power but also consume large quantities of water for cooling purposes. As local and national governments around the world become increasingly concerned about the strain on power grids and water supplies, resistance to new data center developments has grown.
Microsoft’s recent deal with Constellation Energy to resurrect the shuttered Three Mile Island nuclear plant in Pennsylvania to feed its insatiable AI machines demonstrates the growing energy demands of AI. While OpenAI has since denied that Sam Altman sought up to $7 trillion in funding for new AI chips and the power to run them, the scale of OpenAI’s ambitions remains evident.
It is worth noting that Sam Altman has a history of proposing ambitious projects with eye-popping figures. Earlier this year, he reportedly sought up to $7 trillion in funding for new AI chips and the power to run them, a figure that was widely met with disbelief. While OpenAI has since denied that such multitrillion-dollar projects were ever on the table, the scale of Altman’s ambitions remains evident.