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Adam Brown

We've Got to Do Something About the Data Center Energy Crisis

An abstract rendering of a 2-phase immersion cooling tank with neon lights illuminating

Data centers are the backbone of the digital age. From AI processing to cloud computing, these massive facilities house the hardware that powers the internet and all its modern conveniences. However, as technology advances, so too does the demand for energy. In fact, the International Energy Agency predicts that in just a couple of years, data centers could consume the same amount of energy as Sweden or Germany. This staggering statistic has led to an urgent need for energy-efficient innovations, particularly around cooling and power supply. Beyond optimizing existing hardware, The Cloud Minders are exploring solutions to mitigate the impact of Supercompute as a Service on the grid and the environment.



The Looming Energy Crisis in HPC Data Centers


As artificial intelligence (AI) and cloud computing continue to expand, the demand for powerful GPUs (graphics processing units) is skyrocketing. These specialized chips with are designed to handle massive amounts of data and complex calculations, often consuming vast amounts of electricity in the process. According to Ian Gerard, founder and CEO of The Cloud Minders, data centers could theoretically account for up to 50% of U.S. power consumption by 2032 to 2035. This poses a significant challenge not only for the tech industry but also for energy infrastructure at large, leading to a data center energy crisis.


With this rapid growth in demand, it’s clear that the energy required to keep data centers running must be managed more efficiently. The current trajectory of power consumption is unsustainable and could overwhelm aging national energy grids, drive up operational costs, and exacerbate environmental concerns. Without intervention, data centers could become one of the largest consumers of energy, easily surpassing multiple countries and even entire industries in their electricity usage.



Immersion Cooling: A Cool Solution to the Data Center Energy Crisis


One of the primary culprits of energy consumption in data centers is the need to keep servers cool. GPUs generate an enormous amount of heat when running, and the traditional method of cooling—air cooling—is inefficient and power-hungry. Air cooling systems require large fans and air conditioning units that consume additional electricity, accounting for 40% of the facility’s overall energy usage.


A more efficient alternative is 2-phase immersion cooling (2PIC), a method where servers are submerged in a specialized, non-conductive fluid. This fluid absorbs the heat produced by the GPUs and evaporates at a low temperature, and then condenses around cooling coils before dispersing back into the tank. Gerard explains that “doing the phase change between liquid and gas is really efficient for cooling,” which significantly reduces the power needed to cool data centers. Compared to air cooling, immersion cooling can reduce the cooling-related energy usage from 300-600 watts per kilowatt of computing power down to around 100 watts. This reduction is vital for data centers aiming to minimize their environmental impact and cut operational costs.



Nuclear Power: More Relevant Than Ever for Data Center Energy Sustainability


While reducing energy consumption is essential, the tech industry also needs to look at alternative power sources. Surprisingly, one of the most promising solutions for powering data centers is nuclear energy. Nuclear power provides a stable, high-output energy source that could be a game changer for the industry. According to Gerard, "We’ve joked, ‘When can I buy my nuclear reactor?’... It is totally cheating the whole system." While his comment is lighthearted, the concept behind it is serious.


Tech giants like Oracle are already exploring small modular reactors (SMRs), a newer and safer form of nuclear technology. SMRs are much smaller than traditional nuclear power plants and can be installed closer to data centers, providing a reliable and virtually limitless power source. SMRs could allow data centers to operate without relying on fossil fuels, reducing their carbon footprint and providing a more sustainable energy solution.


Nuclear power has faced challenges due to public perception and regulatory hurdles. However, with advancements in safety and reactor design, it is increasingly being seen as a viable alternative to fossil fuels. The combination of SMRs and other renewable energy sources, such as solar or wind, could help data centers meet their growing energy needs without further contributing to climate change.



Conclusion


As the demand for data processing and AI technologies continues to grow, so too does the need for innovative solutions to manage energy consumption in data centers. The projections for future power usage are staggering, but with advancements in immersion cooling and the potential of nuclear power, there is hope for a more sustainable future.

Immersion cooling offers a way to drastically cut the power needed to cool data centers, while nuclear energy could provide the consistent, high-output power necessary to keep them running. By investing in these technologies now, the tech industry can lead the way toward a more energy-efficient future, ensuring that data centers remain sustainable and environmentally responsible in the years to come.


The Cloud Minders isn't sitting idly by. We're already planning ahead with R&D projects that would see a significant transition from air-cooled to two-phase immersion cooling. This, coupled with our near term strategy to source almost half of our power from renewable sources by 2025 reflects our commitment to providing Supercompute as a Service in a sustainable way.

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