Powering AI_ Google Reports Surging 2024 Electricity & Water Use

Summary of Key Points from the Conference Call Company and Industry Overview - The conference call primarily discusses Google and its sustainability efforts, particularly in relation to electricity and water usage in the context of the hyperscaler industry, which includes major tech companies like Microsoft and Meta [2][8]. Core Insights and Arguments 1. Electricity Usage Growth: Google's electricity use surged by 27% year-over-year in 2024, reaching approximately 32 terawatt-hours (TWh), with a 25% increase in North America and a 32% increase internationally [2][8]. 2. Hyperscaler Demand: The report indicates that hyperscalers are on track for their 7th consecutive year of 25%+ year-over-year electricity demand, driven by increasing AI inference demand [2][8]. 3. Data Center Capacity: Assuming an 85% average data center utilization, the collective increase in electricity usage by Google, Microsoft, and Meta implies an additional 2.3 gigawatts (GW) of data center capacity needed [2][8]. 4. Carbon-Free Energy Goals: Google aims to achieve 100% 24/7 carbon-free energy by 2030. In 2024, it managed to meet 66% of its electricity demand with carbon-free energy, a slight increase from 64% in 2023 [8][11]. 5. Regional Performance: In 2024, 9 out of 20 grid regions achieved over 80% carbon-free energy, with the U.S. at 70%, while the Middle East/Africa and Asia Pacific lagged at 5% and 12%, respectively [8][9]. 6. Water Usage Increase: Google's water withdrawal and consumption rose by 28% and 27% year-over-year, totaling approximately 11 billion gallons and 8 billion gallons, respectively [15][17]. 7. Power Use Effectiveness (PUE): Google's global average PUE ratio remained low at 1.09x in 2024, compared to 1.10x in 2023, indicating efficient energy use in data centers [14][17]. Additional Important Insights 1. Challenges in Achieving Carbon-Free Energy: Google acknowledged various market barriers to sourcing carbon-free energy, particularly in Asia Pacific and parts of the U.S., including constrained transmission grids and higher costs for clean energy [11][12]. 2. Trade-offs in Cooling Methods: Google emphasized the balance between water use and electricity use in cooling data centers, noting that water is the most efficient cooling method in many regions [17][18]. 3. Future Projections: The U.S. Department of Energy forecasts that direct water use by data centers could increase by 17-33% annually by 2028, excluding indirect water use related to electricity generation [17][18]. This summary encapsulates the critical points discussed in the conference call, highlighting Google's sustainability efforts and the broader implications for the hyperscaler industry.