Remy Blaire is joined by Jeff Gitterman, CEO of Gitterman Asset Management, to discuss the critical relationship between energy availability and the burgeoning field of artificial intelligence (AI). Broadcasting live from the New York Stock Exchange, Remy sets the stage by emphasizing that all digital activity, including AI, cloud computing, and cryptocurrency applications, fundamentally relies on physical electricity generation and grid infrastructure.
Remy and Jeff delve into the alarming statistics surrounding computing power and energy usage. Jeff reveals that while computing power has surged by an astonishing 360,000 percent over the past decade, energy availability has only increased by a mere 1.6 percent. This stark contrast raises significant concerns about the capacity of the current energy grid to support the growing demand for data centers, which are essential for AI and other digital technologies. Jeff highlights that many data centers remain unused due to a lack of secured power and water agreements, particularly in regions like Phoenix, which is already facing water scarcity issues.
The conversation shifts to the sources of energy that will be necessary to sustain this digital revolution. Jeff points out that China is aggressively expanding its energy infrastructure, investing in coal, nuclear, and solar power at an unprecedented rate. In contrast, the U.S. struggles with a grid that is already at maximum capacity. Jeff warns that without the necessary transformers, natural gas turbines, and raw materials like steel and copper, the U.S. is heading toward a crisis where the energy demands of tech companies cannot be met.
Remy also raises concerns about the implications of rising energy costs for American consumers. Jeff notes that energy prices have already doubled or tripled, and the environmental impact of data centers is becoming increasingly troubling, particularly for lower-income communities. As corporations prioritize contracts with data centers, local communities often suffer from increased energy demands and costs.
To address these challenges, Jeff advocates for a systematic rebuilding of the energy grid, likening the current situation to a historical gold rush where miners rushed in without the necessary tools. He argues that instead of pouring money into future tech demands, investments should focus on sustainable infrastructure and renewable energy sources, including battery storage, to ensure a reliable energy supply.