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White House and Tech Giants Unite to Tackle AI Infrastructure Boom

Word on the StreetFriday, Sep 13, 2024 2:00 am ET
2min read

OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang recently met with senior White House officials and other industry leaders to discuss steps to address the massive infrastructure needs of large-scale AI projects.

According to a statement from the White House, technological participants included Anthropic CEO Dario Amodei, Google President Ruth Porat, Amazon Web Services’ head Matt Garman, and Microsoft President Brad Smith. U.S. government officials in attendance included Commerce Secretary Gina Raimondo, National Security Advisor Jake Sullivan, and Energy Secretary Jennifer Granholm.

Following the talks, the White House announced the creation of an interagency working group to promote the development of U.S. data centers and to expedite the permitting process for these facilities. These initiatives aim to ensure that the U.S. maintains its leadership in the rapidly evolving AI sector, which requires substantial investment in both data centers and energy supplies.

The U.S. Department of Energy will guide data center owners and operators in leveraging resources such as loans, grants, and tax credits to help them find clean and reliable energy sources. Industry attendees also included Exelon CEO Calvin Butler. For instance, OpenAI plans to invest billions domestically to advance AI infrastructure, encompassing data centers, energy capacity, transmission, and semiconductor manufacturing, while attracting global investment.

Coinciding with the discussions, OpenAI unveiled a new AI model, internally dubbed “Strawberry,” capable of performing human-like reasoning tasks. This development highlights the competitive nature of the industry. In a statement on Thursday, OpenAI emphasized the significance of additional infrastructure in the U.S. to the country’s industrial policy and economic future, noting the potential for creating 40,000 jobs across multiple states by investing in U.S. data center projects.

Google’s Ruth Porat stated that robust U.S. energy infrastructure is crucial to ensuring the country’s leadership in the emergent AI industry. She described the White House meeting as a vital opportunity to advance work needed to modernize and expand America’s energy network capacity.

The AI boom has sparked a surge in data center construction in the U.S., while the CHIPS and Science Act and the Inflation Reduction Act have further driven broader manufacturing growth. According to the U.S. Department of Energy, these investments, along with data center expansions, are expected to increase electricity demand by 15% to 20% over the next decade. The Electric Power Research Institute projected that by 2030, data centers will consume 9% of the nation’s total electricity output, up from 4% in 2023.

The Biden administration indicated that renewable energy sources like wind and solar, along with battery storage and improved energy efficiency, are among the best ways to meet the rising energy demands of data centers due to their scalability and cost-competitiveness. The Energy Department noted last month that the recent surge in electricity demand driven by data centers represents an opportunity to accelerate the deployment of clean energy solutions, enhance demand flexibility, and modernize the grid while maintaining affordability.

However, the department cautioned that predictions for electricity demand growth would continue to evolve due to the changing use cases and additional factors. An assessment of data center energy consumption is expected to be released by the end of the year.

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