AI firms must earn support for their power use

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 34:00

   You mentioned it a couple of times today, energy, electricity is a key factor and seems to become the scarcity. In Virginia, there is this plan of a data center that has a capacity of 47 gigawatts, which equals roughly 47 nuclear power plants. So how is your outlook? How fast, how convincingly is that problem going to be solved? And is it going to be solved with existing energy technologies or do we need new innovation on that front, fast, like fusion and other stuff?

2. 34:42

   I think that that's right. I mean, we need real innovation. I mean, it's all of the above, right? I think we have to do the mundane stuff, right, which is how do we permit better, faster? How do we build? It's not even just about, you know, how do we modernize the grid? Can we have faster behind the meter solutions, but that can come online and modernize the grid? There is how do we get even permits to build faster, while at the same time, making sure that it's compliant to all the regulations, including the environment. And, you know, at the end of the day, I think that this industry to which I belong needs to earn the social permission to consume energy because we're doing good in the world, right? Because at the end of the day, it goes back a little bit to your previous question, right? You just can't be, hey, I'm going to consume 4%, 5%. The good news

3. 35:37

   here is we start from a very low base, right? I mean, if you look at it, at the end of the day, it's 3%, 4%, maybe 5%, maybe 10% by the end of the decade. Most of the growth is happening in this space. So that's why I think it's putting a lot of pressure. But still, it needs to result in that economic growth that's broad spread in the economy so that we have the social permission. consume energy. And then to your point, we need the innovation in the sources of energy. We need innovation in how we utilize it with the best, I'll call it power efficiency. And so there's a lot of work that's going on in this space. In order to solve it, do AI companies need to become energy companies in a way? I don't think so. I think that this is another place where I think there is, again, going to be the coming together of a new value chain in which I think

4. 36:33

   there is going to be great innovation and great specialization that will all compound, right? I mean, there may be one or two places where we may do something, you know, that's quote-unquote behind the meter that makes it sound like we're in the energy business. But I'm a big sort of believer that you just can't vertically integrate it into every field, which you don't belong in, quite honestly, and you don't have the expertise in. But your point is given. But one way to think about it is our offtake of energy, you know, of any hyperscaler may be a great stimulant for the next big energy entrepreneur or an energy company today. But what is then the energy technology that you count most on with regard to future development?

5. 37:23

   I think right now, quite honestly, in terms of we have some nuclear purchasing agreements, we'll see how that comes along. Obviously, we're currently in, you know, with all every form of renewable energy. In fact, we may be the biggest buyers of renewable offtake and PPOs everywhere, PPEs rather. And so therefore, I feel that we are going to not be dogmatic about anyone, but we do need. And the other thing I would say is when I look at my data center bills, it's interesting to see even the amount we spend in the grid modernization, because ultimately grid power and stable base power is going to be the most important thing. And so we need to do all of those. If we are talking about energy supply, we have to talk about Europe and