How to design a monster data center

Huge power demand is forcing a rethink ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Energy demand is already straining power grids, and that’s leading AI players to reimagine the data center from the ground up. Today’s newsletter looks at the efficiency drive aiming to shrink the 30% of power that’s currently not going towards generating AI — and that’s amplifying data centers’ carbon footprint. Meanwhile, a judge preliminarily blocked the dismantling of the National Center for Atmospheric Research in the US. Subscribe to Bloomberg to get unlimited access to all our stories. High-power redesigns By Emily Forgash and Rachael Dottle A new generation of ever more powerful artificial intelligence chips is pushing data centers to their limits. These “AI factories,” which gobble up enough power to keep the lights on in millions of homes, threaten to put more pressure on electricity prices in the US and expand AI’s carbon footprint. This is forcing a reckoning among AI players, who are now having to reimagine how data centers are designed, built and powered.  “This is a constant pursuit of finding every ounce of efficiency that we can sort of squeeze out of that power envelope,” says Dion Harris, Nvidia’s senior director of high performance computing and AI hyperscale infrastructure solutions.  And power demand keeps growing. The industry is bracing for chips that bring racks closer to 1 megawatt — or enough to power 750 US homes on average. Right now, around 30% of the power flowing into data centers is not going towards generating AI – it gets used up by cooling systems that keep servers from overheating and by electricity traveling long distances across sprawling campuses.  That is amplifying carbon emissions from data center energy use given operators are increasingly relying on natural gas and coal-fired plants to power their projects.  Microsoft Corp., for example, is considering whether to delay or abandon its ambitious clean-energy targets as it tries to remove hurdles that could hold it back in the AI race, people familiar with the matter told Bloomberg last month. Nvidia and others are rolling out new equipment that consolidates the process of converting power from the grid into a usable current to power chips. This saves space and can improve energy efficiency from 20% to 27%, according to advanced manufacturing and AI infrastructure company Flex Ltd.  These reimagined power systems can serve as a climate measure, especially when combined with efforts to use cleaner energy sources. Another potential benefit of switching to them is that data centers can more easily be connected to renewable energy. China, for example, already builds data centers in regions generating excess renewable energy. The US is nowhere near having extra renewable energy, but operators are looking to batteries and solar power to help run data centers, even as they still have to rely on gas power to do most of the heavy lifting. Power system upgrades are front of mind for AI players. Nvidia, for one, has promised to release new, more powerful chips about once a year. GE Vernova Inc., which makes data center power equipment, is already seeing strong demand from hyperscalers for 800 volt DC systems. “Everybody is asking us to provide solutions for the next orders to come,” says Philippe Piron, chief executive officer of GE Vernova’s electrification segment. Read more Hidden costs 2 million tons Amount of cement required for US data centers through 2030, according to environmental nonprofit RMI Shareholder pressure “In the AI race, tech giants risk undermining their climate commitments at precisely the moment disciplined, long-term decision-making matters most” Andrea Ranger Director of shareholder advocacy at Trillium Asset Management Judge blocks NCAR dismantling By Eric Roston A judge has temporarily blocked the National Science Foundation from dismantling the National Center for Atmospheric Research, or NCAR, a globally significant weather and climate research center based in Boulder, Colorado. The NCAR in Boulder, Colorado. Photographer: Jen Lobo/iStock Editorial/Getty Images Senior US District Judge R. Brooke Jackson on Monday granted a preliminary injunction to the University Corporation for Atmospheric Research, a consortium of institutions that manages NCAR. The consortium sued the National Science Foundation in March, after the federal agency — which provides much of NCAR’s budget — announced plans to break apart the center’s functions. The lawsuit specifically challenged plans to remove supercomputer facilities in Wyoming from under the consortium’s management. Read more This week’s Zero listen Zero Countries Plotting the End of Fossil Fuel Era A meeting of ministers and climate envoys in Colombia last month hoped to bring progress to the world’s commitment on transitioning away from fossil fuels. This week on Zero, Tzeporah Berman, chair of the Fossil Fuel Non-Proliferation Treaty Initiative, tells Akshat Rathi what the conference achieved and where it goes next. Listen now, and subscribe on Apple, Spotify or YouTube to get new episodes of Zero every Thursday. Bloomberg Opinion Opinion Europe needs a USB-C to counter China’s EV truck threat You can thank Brussels’ bureaucrats for the gradual disappearance of the tangled web of mobile-phone charging cables in your desk drawer. If only the EU could be as far-sighted in regulating its biggest battery-powered devices: trucks. Read more More from Green China’s solar industry launches space alliance It’s a potential new avenue for growth in an industry beset by terrestrial overcapacity. Schroders renewable unit targets AI assets The technology is fueling a surge in electricity demand. EDP said to start stake sale of Iberia Solar assets The Portuguese utility is selling a €200m minority stake, according to people with knowledge of the matter. Princeton endowment backs out of oil and gas divestment pledge Four years ago, the fund said it would exit such holdings as way to move toward a net-zero portfolio. More from Bloomberg Business of Food for a weekly look at how the world feeds itself in a changing economy and climate, from farming to supply chains to consumer trends Energy Daily for a daily guide to the energy and commodities markets that power the global economy Tech In Depth for analysis and scoops about the business of technology Explore all Bloomberg newsletters. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Green Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |

Brussels Edition: Chasing tech sovereignty

The EU will unveil measures this week to reduce reliance on other markets ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. The EU is launching a fresh push to up its game when it comes to technological prowess and innovation, part of a bid to loosen dependency on other markets, particularly the US. The new “tech sovereignty” package, to be unveiled tomorrow, contains a suite of measures designed to bolster the EU’s homegrown industrial and technological base, according to a draft of the plan we’ve seen. A central plank is the Cloud and AI Development Act, or CADA, which aims to spur construction of European data centers. This would require governments to store critical data on EU-owned cloud services, and also carry out a compulsory “sovereignty risk assessment” of their cloud providers. The Commission is also proposing the designation of  “data center strategic projects.” European Commission President Ursula von der Leyen, TSMC CEO C.C. Wei, and Olaf Scholz, Germany’s then-chancellor, at a ground-breaking ceremony for a new semiconductor plant in Dresden, Germany, on Tuesday, Aug. 20, 2024. Photographer: Liesa Johannssen/Bloomberg The proposal is an effort to confront US dominance, and major players like Amazon Web Services, Microsoft Azure and Google Cloud. Similarly, the Commission is trying to reduce reliance on non-EU critical supplies like semiconductors through a rebooted Chips Act. Whether Europe is able muster sufficient firepower and political will to compete with rivals over critical supplies and the next wave of digital infrastructure remains to be seen. In the run-up to the adoption of the package tomorrow, some senior Commission figures have expressed concern about any tilt towards protectionism. The reality is that Europe still remains highly dependent on key imports and services, as evidenced by the recent u-turn on sanctioning Chinese semiconductor firm Yangzhou Yangjie Electronic Technology following complaints from German auto producers that they needed the inputs. Meanwhile, as Jorge Valero and Alberto Nardelli reported overnight, the Commission is preparing to grant countries additional fiscal flexibility to cope with the impact of high energy costs due to the Iran war. Brussels will allow governments to spend around 0.3% of GDP on energy-related spending outside the EU’s fiscal framework, sources say. The development is a boost for Italy, which has been leading calls for greater fiscal wiggle room from Brussels as it battles the energy crunch. The Latest EU lawmakers voted in favor of the EU-US trade deal today, clearing a path for final ratification this month. UniCredit has secured commitments that will lift its stake in Commerzbank well above 30%, sources say, adding momentum to the Italian lender’s €38.6 billion bid for its German rival. Danish Prime Minister Mette Frederiksen will remain in power for a third term after concluding record-long talks to form a coalition. Chancellor Friedrich Merz evoked Germany’s Nazi past to warn against a surge in far-right politics as he vowed to carry on with this coalition government in the face of rock-bottom voter support. International use of the euro increased slightly last year but remained well below that of the US dollar, highlighting the difficulty of mounting a realistic challenge to the greenback’s global supremacy. Seen and Heard on Bloomberg Protectionism is “killing” Europe, Serbian President Aleksandar Vucic told Bloomberg TV in Belgrade. Speaking after returning from Beijing with more than $1 billion of investment pledges, Vucic said that joining the EU remains the Balkan nation’s goal. “We’ll do our job,” Vucic said. “But in the meantime, we have to take care of ourselves. We cannot wait forever.” Chart of the Day Euro-area inflation topped 3% for the first time in more than two and a half years, cementing expectations for an interest-rate hike when the European Central Bank meets next week. Consumer prices rose 3.2% from a year ago in May, up from 3% the previous month, Eurostat said today. That was in line with analysts’ expectations. Coming up Representatives from Amazon are questioned by the European Parliament’s Internal Market and Consumer Protection committee this afternoon Press conference with European Council President Antonio Costa and North Macedonian Prime Minister Hristijan Mickoski in Skopje later today European Commission announces tech sovereignty package tomorrow Final Thought Senior officials have warned Vladimir Putin that spending on the war in Ukraine is on an unaffordable path, the most serious sign of internal division in Moscow since the full-scale invasion began. Finance ministry and central bank officials have advised the Russian president that the current level of defense expenditure may lead to a dangerous widening of the budget deficit, according to sources and documents we reviewed. Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |