Energy, Cooling, and Natural Resources in AI

Energy Consumption in Training

Estimates for Large Models

Model Company Estimated Energy CO₂ Equivalent
GPT-3 (175B) OpenAI 1,287 MWh 552 tonnes
GPT-4 OpenAI ~50 GWh (estimated) ~25,000 tonnes
Llama 3 70B Meta ~530 MWh (training) N/A
Llama 3 405B Meta ~7,700 MWh ~3,500 tonnes
DeepSeek-R1 DeepSeek ~6,000 MWh (estimated) ~2,700 tonnes
Grok-3 xAI ~500+ MWh N/A

Methodology: Energy = Total_power × time × (1/efficiency)

  • H100: 700W × 1000 GPUs × 30 days = 504 MWh in GPU alone
  • Plus cooling, network, storage: multiply by PUE (~1.3–1.5)

Energy Consumption in Inference

Per Token Generated (estimate)

Model Hardware Energy/token
GPT-4 H100 cluster ~0.001–0.003 Wh
Llama 3 8B RTX 4090 ~0.0002 Wh
Llama 3 70B 2× H100 ~0.0015 Wh

Global ChatGPT: Estimates point to ~1 GWh/day in 2024 (all queries)

IEA — Global Energy Projection for AI

Year Estimated consumption Comparison
2023 180 TWh All of Sweden
2025 485 TWh All of the United Kingdom
2027 700 TWh All of Germany
2030 950 TWh All of Japan

Source: IEA "Electricity 2024" report; confirmed by Goldman Sachs projections (700 TWh by 2030)


PUE — Power Usage Effectiveness

Formula: PUE = Total data center energy / Server energy

  • PUE = 1.0 → perfection (impossible)
  • PUE = 2.0 → half the energy goes to cooling/other (bad)
  • Current target: PUE < 1.3
Company Declared PUE (2024)
Google (cloud avg) 1.10
Microsoft Azure 1.12
Meta (AI DCs) 1.08
AWS 1.15
Typical data centers 1.5–1.8

Cooling Systems

Air Cooling

  • Standard until 2023: 1U/2U servers with heatsinks and fans
  • Limit: ~400–500W per GPU (RTX 4090, A100 PCIe)
  • Cost: Cheaper; no risk of leaks
  • Inadequate for: H100 SXM (700W), B200 (1,000W), GB200 rack (120 kW)

Direct Liquid Cooling (DLC)

  • Mechanism: Tubes with water/glycol pass through the chip's heatsink
  • Capacity: Dissipates up to 1,000W per chip
  • Implementation: H100 SXM uses DLC; GB200 uses mandatory DLC
  • CDU (Coolant Distribution Unit): Module in the rack that distributes the liquid
  • Target temperature: Coolant inlet < 35°C, outlet < 50°C

Immersion Cooling

Single-phase: Servers submerged in an inert dielectric fluid (3M Novec or similar)

  • The fluid does not conduct electricity; the GPU is submerged directly
  • Dissipation: 100 kWm² vs 30 kWm² in air
  • Cost: High upfront; complex maintenance

Two-phase: The fluid evaporates on contact with the chip → condenses on the tank's ceiling

  • Extreme efficiency; PUE < 1.05 possible
  • Use: Research; high-density clusters

Rear-Door Heat Exchangers (RDHx)

  • Heat exchanger on the rack's rear door
  • Removes heat from the hot air before it exits into the room
  • An increment over air cooling; no changes to the server
  • Effective for racks up to 40 kW

Water Usage

WUE — Water Usage Effectiveness

WUE = Volume of water evaporated / Server energy

  • Air cooling with a cooling tower evaporates water
  • A 100 MW data center can evaporate 2–5 million liters of water per day
Company WUE (2024) Method
Google 0.96 L/kWh Reuse in cold regions
Microsoft 0.3 L/kWh Closed-loop DLC in new DCs
Amazon 1.8 L/kWh Evaporation in towers

Local impact: Concerns in regions with water scarcity (Arizona, Nevada, Netherlands)


Energy Sources

Company Renewable Energy Commitment
Google 100% renewable since 2017 (credit purchases)
Microsoft 100% renewable by 2025 (PPA contracts)
Meta 100% renewable; carbon negative by 2030
Amazon/AWS 85% renewable in 2024; 100% target 2025
xAI (Grok) Memphis, TN — coal/gas mix; controversial

Problem: "100% renewable" often means carbon credits (RECs), not literal 24/7 renewable energy.

Carbon Intensity by Region:

  • France: 56 gCO₂/kWh (nuclear)
  • Iceland: 0 gCO₂kWh (geothermalhydro)
  • USA (average): 386 gCO₂/kWh
  • Poland: 713 gCO₂/kWh (coal)

Natural Resources — Critical Minerals in GPUs

Materials in an H100 GPU

Material Use Main Origin Risk
Copper Interconnects, PCB Chile, Peru Low
Silicon Base chip Global quartz sand Low
Tungsten Vias (TSV) China (85%), Russia High
Cobalt Capacitors, backup battery Congo DRC (70%) HIGH — conflict
Lithium Batteries in the DC Chile, Australia Medium
Tantalum Capacitors Congo DRC, Rwanda HIGH — conflict
Indium Displays, solders China (60%) Medium
Gallium GaAs compounds China (95%) CRITICAL (exports restricted since 2023)
Germanium Optical fiber, chips China (60%) CRITICAL (exports restricted)
Neodymium Magnets (cooling fans) China (70%) High
Dysprosium High-temp magnets China (monopoly) CRITICAL
Terbium Magnets, lasers China (monopoly) CRITICAL

Rare Earth Elements (REEs)

  • 17 elements (lanthanum, cerium, neodymium, etc.)
  • China controls ~60% of production; ~85% of processing
  • Use: Permanent magnets (fans, motors), lasers, phosphors
  • China restricted exports in 2023 → impact on the supply chain

Conflict Minerals in the Congo (DRC)

  • Congo: 70% of the world's cobalt, significant tantalum
  • Artisanal mines (ASM): 20% of production with documented child labor
  • Certifications: RMI (Responsible Minerals Initiative), EICC
  • NVIDIA, AMD, Intel have due diligence policies, but traceability is difficult
  • Alternatives under research: Cobalt-free batteries (LiFePO4); alternative MLCC capacitors

Electronic Waste (E-waste)

  • Lifespan of a data center GPU: 3–5 years
  • Global e-waste (2023): 53 million metric tonnes/year
  • Actual recycling: Only ~17% is formally recycled
  • Pressure: EU WEEE regulation (Waste Electrical and Electronic Equipment)
  • Initiatives: Google refurbishment; Dell Asset Recovery; AWS Refurb program

Sustainability in AI Development

Efficiency Metrics

  • FLOPS/Watt: Blackwell B200 ≈ 3× more efficient than H100 per inference FLOPS
  • Tokens/Watt: Inference of Llama 3 8B on M2 Ultra ≈ 10× more efficient than H100 cloud
  • Compute-optimal training: Chinchilla (20 tokens/parameter) avoids wasted compute

Smaller Models with the Same Quality

  • Phi-4 (14B): Performance of 70B models in STEM — 5× less energy
  • Qwen2.5-Coder-7B: Surpasses 13B+ models from 2023 — 2× less energy per query
  • Distillation: DeepSeek-R1-7B has 70% of the 70B's capability — 10× less energy

Green AI

  • Foundational paper: "Energy and Policy Considerations for Deep Learning in NLP" (Strubell et al., 2019)
  • MMCE (Marginal Carbon-aware Model Evaluation): Benchmark accounting for energy cost
  • Initiative: MLCommons Power Track; Energy Star for AI servers