The development of artificial intelligence (AI), with its significant power consumption, is raising questions about the impact on energy prices and the grid, the chief executive of BlackRock, the world's largest asset manager, said on Monday.
Despite the potential challenges, the need for increased infrastructure presents a “huge” investment opportunity, Larry Fink said at the special meeting of the World Economic Forum in Riyadh.
“The amount of power that's needed to use AI has a huge impact on society. Where's that power going to come from? Are we going to take it off the grid? What does it mean for elevated energy prices?” Mr Fink said.
“Forget about the use of it, but just the generation of it [requires] massive power … but that is a huge investment opportunity.”
The International Energy Agency has forecast that data centres' total electricity consumption could reach more than 1,000 terawatt hours (TWh) in 2026, which is roughly equivalent to the current power demand in Japan.
“Updated regulations and technological improvements, including on efficiency, will be crucial to moderate the surge in energy consumption from data centres,” the agency said in a report this year.
Meanwhile, parallels have been drawn between the AI boom and the tech bubble of the late 1990s, a period marked by speculative investment in many internet-based companies.
While the tech bubble was largely centred on the internet and related technologies, such as e-commerce and online services, the AI revolution encompasses a broader range of technologies and applications, including natural language processing, robotics, and autonomous systems.
“The difference between this technology cycle around AI and the other ones is that it's very capital intensive, compute intensive, and energy intensive,” William Ford, the chief executive of General Atlantic, said during the same panel session.
“The internet cycle was not capital intensive at all. It could be widely available and actually connected up the world,” Mr Ford said.
Some of the large tech companies are spending $20 billion to $50 billion on infrastructure related to AI and compute capacity every year, he added.
Energy transition
As many developed economies switch to renewable energy at a faster pace, concerns are rising regarding whether clean energy sources can adequately meet the growing power demands of data centres.
A surge in power usage from AI data centres could significantly boost natural gas demand in the second half of the decade, according to Tudor Pickering Holt & Co.
An additional 8.5 billion cubic feet per day of natural gas might be needed to keep pace with the increasing demand, the investment bank said in a report last week.
“We talk about AI [and] we talk about all of these huge requirements for energy and I ask how are we going to deliver the hundreds and hundreds of gigawatts that would be required for these technologies,” Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Sunday.
The rise of AI technologies is happening amid debates about the continued use of fossil fuels, which contribute to over 75 per cent of global greenhouse gas emissions.
Producers have argued that a rapid transition away from fossil fuels could lead to energy insecurity and economic disruptions. Coal, crude oil and natural gas are expected to be around for longer in developing economies.
“We need all sources of energy,” said Amin Nasser, the chief executive of Saudi Aramco.
“We need to understand very clearly that policy without technological readiness and without economic competitiveness is not going to drive a solution. Incentives will drive a solution but it's not sustainable,” Mr Nasser said in a separate panel session.
Killing of Qassem Suleimani
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
More on Quran memorisation:
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Killing of Qassem Suleimani
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Results:
Women:
1. Rhiannan Iffland (AUS) 322.95 points
2. Lysanne Richard (CAN) 285.75
3. Ellie Smart (USA) 277.70
Men:
1. Gary Hunt (GBR) 431.55
2. Constantin Popovici (ROU) 424.65
3. Oleksiy Prygorov (UKR) 392.30
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
French Touch
Carla Bruni
(Verve)
The five pillars of Islam
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
New schools in Dubai
The five pillars of Islam
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Duminy's Test career in numbers
Tests 46; Runs 2,103; Best 166; Average 32.85; 100s 6; 50s 8; Wickets 42; Best 4-47
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
MATCH INFO
Chelsea 3 (Abraham 11', 17', 74')
Luton Town 1 (Clark 30')
Man of the match Abraham (Chelsea)
KILLING OF QASSEM SULEIMANI
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What is a black hole?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
Mohammed bin Zayed Majlis
Read more about the coronavirus
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
MATCH INFO
UAE Division 1
Abu Dhabi Harlequins 12-24 Abu Dhabi Saracens
RESULTS
West Asia Premiership
Thursday
Jebel Ali Dragons 13-34 Dubai Exiles
Friday
Dubai Knights Eagles 16-27 Dubai Tigers
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
