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Data Center News > Blog > Power & Cooling > Enterprises unprepared for AI’s power demand
Power & Cooling

Enterprises unprepared for AI’s power demand

Last updated: January 16, 2025 10:59 pm
Published January 16, 2025
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Enterprises unprepared for AI's power demand
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New analysis commissioned by SambaNova highlights a important readiness hole as enterprises face escalating energy calls for with AI. Whereas 49.8% of leaders are involved in regards to the power and effectivity challenges posed by AI, solely 13.0% monitor the ability consumption of their AI techniques. The survey exposes an absence of infrastructure preparedness amidst the rise in AI deployments throughout america and Europe.

“The findings reveal a stark actuality: companies are speeding to undertake AI, however aren’t ready to handle its power influence,” stated Rodrigo Liang, CEO of SambaNova Programs. “With no proactive strategy to extra environment friendly AI {hardware} and power consumption, notably within the face of accelerating demand from AI workflows, we danger undermining the very progress AI guarantees to ship. By 2027, my expectation is that greater than 90% of leaders will likely be involved in regards to the energy calls for of AI and can monitor consumption as a KPI that company boards will monitor carefully.”

Key findings from the analysis embody:

AI Inference Will Drive Energy Demand Development: Whereas 70.0% of leaders acknowledge the energy-intensive nature of coaching massive language fashions, solely 59.7% are conscious of the numerous energy calls for of inference. This hole is important as inference workloads are set to dominate AI utilization with the scaling of Agentic AI.

Vitality Effectivity is a Strategic Precedence: Solely 13.0% of organizations presently monitor AI energy consumption, but 56.5% acknowledge that power effectivity will play a vital function in future strategic planning. The necessity to tackle rising power calls for is being pushed by each value administration imperatives and operational scalability considerations.

See also  UAE’s Falcon 3 challenges open-source leaders amid surging demand for small AI models

Scaling Agentic AI Brings New Challenges: The roll-out of Agentic AI is amplifying energy considerations for enterprises. For 20.3% of firms, rising energy prices are a urgent challenge. Moreover, 37.2% are experiencing rising stakeholder strain to enhance AI power effectivity, with an extra 42.0% anticipating these calls for to emerge quickly.

Few Enterprises Are Proactively Addressing AI’s Vitality Impression: Amongst organizations which have broadly deployed AI2, 77.4% are actively in search of to scale back energy utilization. Widespread approaches embody {hardware} and software program optimization (40.4%), adopting energy-efficient processors (39.3%), and investing in renewable power (34.9%). Nonetheless, these measures stay inadequate in comparison with the speedy tempo of AI adoption and scaling.

The rise of agentic AI marks a turning level for the business. As companies scale AI and deploy extra superior workflows, addressing power calls for will likely be essential to managing prices and attaining effectivity objectives. Bridging the notice hole with schooling and strategic planning will likely be key to making sure AI’s progress stays each financially and commercially sustainable.

The extreme energy consumption and prohibitive prices related to present GPU-based options are prone to compel many enterprises to hunt extra environment friendly alternate options. This shift will basically change the panorama of AI {hardware}, favoring options that ship excessive efficiency with out unsustainable power calls for.

“The speedy tempo of AI adoption underscores a important want for enterprises to align their methods with the ability necessities of AI deployment,” acknowledged Liang. “As companies combine AI, addressing power effectivity and infrastructure readiness will likely be important for long-term success. Clients are turning to SambaNova for assist deploying power environment friendly options.”

See also  Data Center Sustainability: 5 Overlooked Strategies for Improvement | DCN

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TAGGED: AIs, demand, enterprises, Power, unprepared
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