Why the Parts and Properties Powering the AI Boom Are in Short Supply

WSJ Tech News Briefing

The Wall Street Journal

News, Tech News

4.3 • 1.7K Ratings

🗓️ 24 April 2024

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

As the demand for artificial intelligence grows, so does the need for more facilities to power it—namely, data centers. Data centers can take years to build because they require particular conditions, including cooling centers, ample electricity and real estate. Now, because of the AI boom, there’s a shortage of some of the key elements that data centers need. WSJ reporter Tom Dotan tells host Alex Ossola about what this means for the future of AI. Plus, startup Exowatt was created to power data centers via solar energy, and it’s already raised millions from investors. WSJ climate finance reporter Amrith Ramkumar talks about how the technology works. Listening on Google Podcasts? Here's our guide for switching to a different podcast player. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Net Suite by Oracle brings accounting, finance, inventory, and HR into one proven platform, helping you reduce costs everywhere.
0:09.0	Back by popular demand, Net Suite is extended its one-of-a-kind flexible financing program for a few more weeks.
0:15.8	Head to Netzweed.com. Wall Street.
0:19.8	Welcome to Tech News Briefing. It's Wednesday, April 24th. I'm Alex Osala for the Wall Street Journal.
0:29.0	Coming up on today's show, a new clean energy startup just received millions of dollars in
0:34.0	funding from some of the biggest names in artificial intelligence. We'll hear
0:38.0	about how its technology works from W.S.J. Climate Finance reporter Amrith Rhamkumar.
0:43.7	And then, as the AI boom continues, companies are scrambling to build data centers as quickly
0:48.6	as possible. But they're finding that the necessary parts, power, and property are in short supply.
0:54.8	W.S.J. reporter Tom Doton tells us more about the shortage and what it means for AI's future.
1:09.2	But first, XoWatt is a new clean energy company that uses solar power to generate electricity. Sam Altman, the CEO of Open AI and venture capital firm Andresen Horowitz, are among the investors putting
1:15.8	$20 million into the company. What makes it different is not just its approach, but also
1:21.2	the problem is trying to solve.
1:23.0	ExoWatt was launched with the sole purpose of supplying clean energy to big data centers that are
1:27.8	powering AI.
1:28.8	W.S.J. Climate Finance reporter Amrith Ram Kumar is here now with more. Amrith, this problem of AI's
1:35.6	demand for electricity, just how urgent is it? The problem has really overtaken the entire energy
1:42.3	industry, where about four months into 2025. has really overtaken the entire energy industry.
1:43.4	We're about four months into 2024 and already pretty much every notable utility
1:48.1	an energy firm is talking about the insatiable electricity demand from data centers.
1:53.2	We've also seen some utilities now saying,
1:55.8	well, we need to keep our natural gas and coal plants on,
	...

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