Week 19: Are AI and Big Tech the Modern-Day Emperors?

Dear all,

Bread and games for the people and everything else will be fine. The Romans knew the trick. The amount of media coverage surrounding the Eurovision Song Contest would make any dictator deeply jealous. This type of entertainment evokes a mindless fog, leaving a sluggish, fatty aftertaste, reminding us that the masses, after all, need to be entertained and hopefully forget, even for a couple of hours, the wretched reality they will have to face the next day. Glitter and glamour. Made-up libertarianism: 'Everyone is welcome, and you can be who you are.' I wonder how AI would respond to a question about the sanity of this type of entertainment? Now, with AI, how detrimental is AI to the climate? This question has been around for some time and is indeed entertaining to study in more detail.

The artificial intelligence boom has not only enriched tech giants like Microsoft and Amazon with billions in paper wealth, but it has also unexpectedly boosted utilities and energy companies. The burgeoning power requirements of massive data centers, essential for AI operations, have caught Wall Street’s attention, though the environmental ramifications are less frequently discussed. The interest in the utilities sector is palpable, with a nearly 8% rise this year, outstripping the broader S&P 500 index. This increase underscores how essential energy has become to technology's infrastructure.

However, the environmental impact of this energy surge remains under-examined. Generative AI, in particular, is emerging as a significant energy consumer. Analysts at Wells Fargo predict a potential increase in U.S. electricity demand by as much as 20% by 2030 due to AI. Recently, Dominion Energy's stock surged when the company announced plans to supply electricity to 15 new data centers, each demanding a gigawatt or more—a level of consumption sufficient to power approximately 750,000 homes.