In Sizing Up Future AI Power Requirements, It PaysTo Watch For Zombies

Forbes - Jan 14th, 2025
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A recent review of data center electricity supply requests indicates that utilities have been asked to provide over 125,000 MW of new capacity, driven mainly by AI-related demands. This surge has raised concerns about the impact on the power grid. However, experts suggest that these demands may be inflated due to a classic hype cycle, reminiscent of the Dot.com era. The actual power consumption could be lower than projected as advancements in chip and cooling technologies improve efficiency.

The story highlights the competitive nature of the AI industry, likening it to the search engine race of the 1990s, with only a few major players expected to dominate in the end. Furthermore, the utility interconnection process reveals that many initial requests for electricity may not materialize into actual projects, as companies submit multiple applications to secure power quickly. This 'zombie request' phenomenon reflects a larger trend seen in the energy sector, where a significant portion of proposed projects remain unbuilt. The narrative underscores the importance of managing expectations and understanding the evolving dynamics of AI and data center developments.

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RATING

6.4
Moderately Fair
Read with skepticism

Overall, the news story provides an insightful look into the burgeoning demand for data center electricity capacity, particularly in relation to AI developments. It is informative and engaging, using historical analogies to offer context. However, the story's effectiveness is somewhat hindered by its lack of explicit sources and balanced perspectives. While it highlights potential industry challenges and advancements, it could benefit from more direct evidence and diverse viewpoints to support its claims. Enhancing source quality and transparency would significantly bolster the story's reliability and depth. Additionally, maintaining a focused narrative and professional tone would improve clarity, helping readers navigate the complex information more easily. Despite these areas for improvement, the story succeeds in sparking interest and providing a basis for further exploration of the topic.

RATING DETAILS

7
Accuracy

The news story provides a detailed examination of the electricity supply requests for data centers, with specific statistics such as the 125,000 MW of new capacity requested. This figure is likely based on verifiable data from utility announcements. However, the story lacks direct citations or references to specific reports or studies, which could enhance its factual credibility. The mention of historical parallels, like the Dot.com era, while illustrative, does not contribute to the factual accuracy regarding the current situation. Furthermore, while the story discusses technological advancements like liquid cooling, it does not provide specific references or data to support claims of their impact on reducing energy requirements. Thus, while the story offers a generally accurate portrayal of the industry’s landscape, it could benefit from more precise sourcing and direct evidence to substantiate its claims.

6
Balance

The news story attempts to balance the potential impacts of increased data center demand with technological advancements that could mitigate these impacts. However, it leans towards a skeptical view of the projected demand, suggesting that current figures may be inflated due to a hype cycle. While the story acknowledges the positive potential of AI in making grids more efficient, it does not provide substantial counterarguments or perspectives from those who might believe in the higher demand projections. The narrative could benefit from including voices of industry experts or stakeholders who are optimistic about the growth of data center demand, providing a more comprehensive view. Additionally, the story’s analogy to past technology cycles might overshadow the contemporary perspectives that are necessary for balanced reporting.

8
Clarity

The story is generally clear and well-structured, with a logical flow that guides the reader through complex industry dynamics. It effectively uses analogies like the Dot.com era to explain current trends, making the content more relatable and engaging. However, the inclusion of tangential information, such as historical references and unrelated current events, can be distracting. The tone remains neutral for the most part, but the use of colloquial language, such as 'hyperventilates' and 'zombie requests,' might detract from the professionalism expected in a news piece. To enhance clarity, the article should maintain focus on the main topic and minimize digressions, ensuring that complex information is consistently presented in a straightforward and professional manner.

5
Source quality

The story does not explicitly cite any external sources or experts, which detracts from its perceived credibility. References to utilities like Dominion Energy and AEP Ohio are mentioned, but without direct quotes or links to official statements or documents. This lack of attribution makes it difficult to assess the reliability of the information presented. Moreover, while the story discusses industry processes and uses quotes from individuals like Brian Janous, it does not provide their credentials or affiliations to verify their authority on the subject. To improve source quality, the article should incorporate direct citations from industry reports, statements from utility companies, and expert opinions with clear attributions, enhancing the strength and reliability of its claims.

6
Transparency

The news story provides some context about the data center industry's current state and potential future developments, but it lacks transparency in its disclosure of sources and data. While it explains complex processes like utility interconnection in detail, it does not reveal the methodologies or specific data sources that underpin its claims. Additionally, potential conflicts of interest or biases are not addressed, which could affect the reader's trust in the story's impartiality. Transparency would be improved by including references to specific studies, reports, and stakeholder perspectives, as well as disclosing any affiliations or potential biases of the author. This would help readers better understand the basis for the story's assertions and the extent to which they can be trusted.