Consulting firms say that as AI gets cheaper, power demand could keep climbing - Business Insider
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AI costs are falling, and the pressure on demand is rising.
AI is getting cheaper to use, but as companies use it more, we're bound to see more pressure on the electric grid. In two new reports published this week, McKinsey and Boston Consulting Group said that as companies move beyond experimenting with chatbots and start using AI across more parts of their businesses, cheaper models and falling token prices could make it easier to justify more frequent, higher-volume AI use — and that could pose a problem for the grid. Companies often pay AI providers based on tokens, the small units of text that models read and generate. In the short term, McKinsey said that cheaper tokens could make AI more widely used and raise electricity demand, while companies push to make models, chips, and data centers more efficient. That matters because data centers are already using more power. McKinsey called data-center electricity demand “the fastest-growing load segment in OECD power markets.” In several markets, it said, data centers are already the biggest reason electricity demand is expected to grow through 2030.
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