AI Boom Drives Surge in Data Centers
Securing Carbon-Free Power Sources Like Nuclear and Renewable Energy
Sam Altman, CEO of OpenAI, is investing in the solar startup Exowatt. This move comes as data centers, which consume massive amounts of electricity due to the generative artificial intelligence (AI) boom, are rapidly increasing, prompting efforts to secure clean energy sources such as nuclear power and renewables.
According to the Wall Street Journal (WSJ) on the 21st (local time), Altman and the venture capital (VC) firm Andreessen Horowitz are among the investors in Exowatt, contributing to a $20 million (approximately 27.6 billion KRW) funding round.
Exowatt has developed large container-sized modules equipped with solar lenses instead of traditional solar panels. These convert solar energy into heat, enabling energy storage 24 hours a day. To qualify for subsidies under the U.S. Inflation Reduction Act (IRA), the company prioritized the use of American-made components while reducing reliance on Chinese parts. Ultimately, the goal is to provide electricity at a low cost of 1 cent per kWh without subsidies.
Altman’s investment in energy companies is driven by the surge in power demand as data centers are being built one after another due to the AI boom. The electricity consumed by a single data center is equivalent to the usage of hundreds of thousands of households. Accordingly, Altman has also been heavily investing in energy companies such as Helion, a nuclear fusion startup, and Oklo, a developer of small modular reactors (SMRs).
Other companies are also increasing their investments in the energy sector. Amazon recently acquired a data center powered by a nearby nuclear plant for $650 million (approximately 897.7 billion KRW). Microsoft (MS) is also sourcing part of the electricity needed to operate AI from nuclear power plants.
The WSJ reported, "Current solar, wind, and battery technologies have not yet advanced enough to meet the demand of data centers worldwide that require cost-effective power 24 hours a day," adding, "The AI boom is betting that solar and energy storage facilities will be able to handle some of the enormous power demand of data centers."
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