AI Experts Caution: Electricity Costs Could Hinder Economic Growth
Getty Images The projected electricity consumption in data centers is expected to increase as more artificial intelligence hubs are constructed. Experts caution that the government must invest in long-term renewable energy if it aims to foster AI growth in the East of England.
A £2bn data center powered by AI is set to be established in Loughton, Essex, while Chancellor’s plans for ‘Europe’s Silicon Valley’ span between Cambridge and Oxford. Dr Haider Raza from the University of Essex expressed enthusiasm about this development but highlighted that sustainable energy sources are essential for the thriving of AI.
A government spokesman acknowledged their exploration into bold clean energy solutions to cater to AI ambitions while adhering to the UK’s net-zero targets. Prime Minister Sir Keir Starmer has shared his vision for unlocking AI, stressing its significant potential in revitalizing public services.
The East of England is positioned at the forefront of the government’s plan for AI technology. Nscale has pledged £2bn towards the Loughton data center, scheduled to be completed by 2026. It’s anticipated that advancements in the Oxford-Cambridge growth corridor could boost the UK economy by up to £78bn, with AI playing a catalytic role.
The plan enjoys support from prominent companies like AstraZeneca, GSK, and Astex, which are utilizing AI for cancer drug development at Cambridge Science Park. However, Dr Raza voiced concern about high electricity costs that could hinder growth. He emphasized the need for government investment in renewable energy to power AI centers.
According to a study by Dr Sasha Luccioni, generative AI might consume approximately 33 times more energy than task-specific software-based machines. Kenso Trabing from Morphware expressed dissatisfaction with the UK’s industrial electricity prices of £350 to £400 per megawatt hour (MWh), compared to £35 to £40 MWh in Paraguay.
Science minister Lord Patrick Vallance was chosen by Chancellor Rachel Reeves as the person to lead on the Oxford-Cambridge growth corridor, visiting Cambridge Science Park afterward. He declared that this area could become “one of the most important innovation zones globally.”
Despite concerns about water scarcity in a region known for being among the driest parts of Britain and high electricity costs posing barriers to AI innovations, experts agree on its crucial role in future development.
