The pace of AI development and adoption is unprecedented. And yet, it may never be this slow again, thanks to ever-increasing compute power, the growth of data sets, and breakthroughs in machine learning algorithms.
The emergence of this industry on such a vast scale creates an opportunity for Europe to set the standard for AI globally. To ensure AI is not only powerful, but sustainable too. McKinsey estimates AI could soon contribute $13 trillion in additional economic output by 2030, boosting global GDP by about 1.2 percent a year. Imagine if Europe were able to seize a large slice of this growth before others?
The demand for AI has fast-tracked the evolution of the computing and infrastructure industries behind it. This has compelled AI cloud computing service providers to expand their IT infrastructure offerings to meet the computational, data-heavy, and energy-intensive requisites of AI, with IDC estimating spending to surpass $300 billion by 2026.
But meeting this demand is no small feat: AI-specialized data centers, which will effectively power an industry, differ from more conventional compute facilities and bring about their own challenges. AI compute outpaces regular compute in multiples, bringing with it new design requirements and vastly increased power demands. To keep pace with AI development, many US hyperscalers are now racing to retrofit and repurpose their infrastructure. Billions have been invested into the upgrading of data centers to accommodate the boom in AI tools and ensure their existing facilities are fit for purpose, and yet demand still outpaces supply.
Managing Director of Taiga Cloud, a Northern Data Group division.
Europe’s opportunity
Here is where Europe finds itself in a unique position. Its more nascent AI infrastructure means it has an opportunity to leapfrog the US, with a chance to build its AI offering in the way which its US counterparts now wish they had done in the first place. Largely unhindered by outdated IT infrastructure, Europe can immediately innovate and define its AI offering.
For example, Europe has the opportunity to ensure that AI infrastructure is designed with start-of-the-art liquid cooling technology and power capabilities, setting the standard for a more sustainable AI industry – with systems powered by clean, carbon-free renewable power. With a strong renewable energy presence in countries like Sweden or Finland, it’s not hard to see how they could help drive the sector towards net zero.
Energy-efficient – setting new standards in sustainability
It cannot be ignored that AI data centers are estimated to consume 2% of global energy, with the industry expected to account for 8% of global carbon emissions by 2030 (IEA), as demand grows. Improving the efficiency and sustainability of AI is a priority. Therefore, Europe needs to set the standard in data center design to ensure best-in-class infrastructure.
Europe already leads the way for others to follow, with data center regulation a key part of the European Green Deal which aims to make the EU climate neutral by 2050. As AI’s potential continues to evolve, the technological tide of change is unavoidable and exciting. But that’s why it’s so important that its impact is acknowledged and acted upon responsibly.
It is for Europe, then, to set the global standard in responsible AI with minimum environmental impact from the start, and showing others how it should be done. This must start now. Generative AI workloads are predicted to spur a tripling of hyperscale data center capacity over the next six years, which in turn will have consequences for the environment.
Prioritization of the environment must also encompass improving transparency around sustainability metrics, such as Power Usage Effectiveness (PUE). A historic lack of accountability has prevented a clear understanding of the environmental impact of AI training and inference – another area where Europe has an opportunity to lead.
What is clear is that we are amid a global technology shift driven by AI. The opportunity for Europe is once in a generation. Europe can – and should – set the global standard for responsible, sustainable AI, balancing power, planet, and innovation to ensure that AI breakthroughs are delivered without compromise.
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