5 Key Takeaways
- Eric Schmidt warns that AI's growth is limited more by electricity than by technology or chips.
- Data centers powering AI are consuming record amounts of water and electricity, raising environmental concerns.
- Meeting future AI energy demands could require massive infrastructure, such as building 92 new nuclear power plants in the US alone.
- Tech companies are making major investments in energy sources and water rights to sustain AI development.
- Unchecked AI energy consumption could threaten climate goals and strain existing power grids.
Will AI Outgrow Our Power Grid? Eric Schmidt’s Stark Warning About the Future of Artificial Intelligence
Artificial intelligence (AI) is advancing at a mind-blowing pace. From writing code and diagnosing diseases to composing music, AI is quickly becoming a bigger part of our daily lives. But while we’re busy marveling at what these smart machines can do, there’s a hidden problem brewing in the background—one that could put the brakes on AI’s future.
Former Google CEO Eric Schmidt recently sounded the alarm: the real limit to AI’s growth isn’t how smart we can make the machines, but whether we have enough electricity to keep them running.
AI’s Real Bottleneck: Electricity, Not Technology
On a recent episode of the Moonshots podcast, Schmidt explained that as companies race to build even smarter AI—sometimes called “artificial general intelligence” (AGI), which could think and reason like a human—the amount of energy needed is skyrocketing. In fact, Schmidt estimates that just to keep up with America’s AI ambitions, the country might need 92 gigawatts of extra power. That’s like building 92 new nuclear power plants—an almost impossible task, considering only two have been built in the U.S. in the last 30 years.
The Hidden Costs: Water and Power
Big tech companies like Microsoft, Google, Meta, and OpenAI are all in a race to develop the most powerful AI. But their data centers—the giant warehouses full of computers that “train” AI—are using record amounts of electricity and water. For example, Microsoft’s 2023 environmental report showed a 34% jump in water use, totaling 1.7 billion gallons, just to keep their AI data centers cool. By 2027, experts warn that AI could use enough water each year to supply all of Canada.
A Global Brain, But at What Cost?
This massive hunger for energy and resources is raising serious concerns. Environmental groups like Greenpeace warn that if AI keeps growing unchecked, it could make it impossible to meet climate goals. Yet, the promise of super-smart AI—able to revolutionize medicine, science, and more—is too tempting for companies to slow down.
As Schmidt puts it, “We don’t know exactly what superintelligent AI will bring, but we do know it’s coming. And we need to make sure our energy systems can handle it.”
The Big Question
AI could help solve some of humanity’s biggest problems. But if we’re not careful, it might also strain our power grids and water supplies to the breaking point. The real question isn’t just how smart our machines will get—but whether we’ll have enough power to keep them running. Without electricity, even the smartest AI is just a pile of useless chips.
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