In a noteworthy move, Amazon Web Services (AWS) recently acquired Talen Energy’s 960MW data center campus in Pennsylvania, which draws power from the neighboring 2.5GW Susquehanna nuclear power station. The $650 million deal is not only a significant investment for AWS but also a clear indicator of a broader trend in the tech industry: companies are increasingly turning to nuclear and renewable energy sources to power their data center operations.
AWS is not alone. MicrosoftMSFT has taken a step toward nuclear power as well, signing a deal last year with Helion Energy, a private U.S. nuclear fusion company. Helion is expected to provide Microsoft with electricity after about five years, marking the first such power purchase agreement for fusion energy. While it remains to be seen whether Helion will be able to follow through on its ambitious promise to deliver reliable fusion energy in five years, the mere fact that such a reputable company as Microsoft was willing to sign on to the agreement gives reason to be optimistic.
The trend toward exploring cutting edge energy sources to power their operations extends beyond these two tech giants. Cryptocurrency mining companies, often criticized for their high energy consumption, are also making strides in procuring electricity from nuclear and renewable sources.
For instance, Aspen Creek, a crypto mining firm, has a core principle of using renewable electricity, such as solar and wind, to power its mining operations. Similarly, Blockfusion and U.S. BitcoinBTC Corp are two companies that opened facilities in Niagara Falls to take advantage of the region’s abundant hydropower. Crypto mining is also playing a role in reducing emissions from oil production. By locating near oil fields, mining companies can support technologies that capture and use natural gas that would otherwise be flared or vented, thus reducing waste.
Crypto mining firms are also providing a boost to nuclear. TeraWulf, a mining firm, opened the first U.S. crypto mining facility powered entirely by nuclear energy in 2023. Additionally, Oklo, an energy startup planning to build advanced small nuclear reactors, has signed a 20-year deal with mining company Compass Mining.
The increasing adoption of nuclear and renewable energy sources by tech companies is a sign that the industry faces growing scrutiny over its energy use. The U.S. Energy Information Administration recently withdrew a survey of crypto mining companies’ electricity use due to the agency’s failure to follow well-established data collection procedures. The incident highlights the pressure crypto mining and other tech companies are facing from governments, as well as from the public.
However, it is important to recognize that the tech industry is not sitting idly by. As awareness of their energy consumption grows, companies are proactively seeking solutions and forming partnerships with energy providers. This trend demonstrates that the industry is perfectly capable of adapting and addressing the public’s concerns, often before the government has time to step in to do anything.
The lesson to be drawn from these developments is that the private sector is often best equipped to identify and tackle challenges within its own industry. When faced with criticism over their energy use, tech companies have responded by exploring and investing in low-emission energy sources. Whereas governments might try to bluntly reduce their energy consumption overall—such as through electricity taxes—by turning toward low-emission sources, these companies can increase their energy use over time as technology demands, without worrying about baggage associated with the environment. This approach not only benefits the companies from a public relations perspective, it has the added benefit of addressing environmental concerns without letting up on innovation.
As the spotlight shifts to other energy-intensive technologies, such as artificial intelligence, it is important to keep this history in mind. AI, with its growing prominence and vast computational needs, is likely to face similar scrutiny over its energy consumption. The approach taken in the mining and cloud computing spaces can serve as a blueprint for AI companies. By anticipating potential concerns upfront and actively seeking partnerships with energy providers, AI firms can demonstrate their commitment to responsible energy use.
That said, pressure campaigns to make tech companies feel guilty about their energy use can easily be counterproductive. If these deals drive up the cost of energy because companies seek out riskier or less reliable energy sources out of a desire not to be pilloried in the public square, consumers could well end up losing out.
Still, the recent deals between tech companies and nuclear and renewable energy providers are a testament to the industry’s commitment to addressing public concerns about its energy consumption. These companies are not only securing their own best interests from the perspective of their bottom lines, they are paving the way for a more energy-abundant future by becoming reliable partners and customers for the energy sources of tomorrow.
This article was originally published by a www.forbes.com . Read the Original article here. .