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Clean AI
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Context
The IMF report highlights that the economic benefits of Artificial Intelligence (AI) could outweigh its environmental costs, stressing the importance of integrating renewable energy into AI infrastructure development.
AI’s Energy Demand and Economic Impact
- Economic Gains vs. Environmental Costs: The IMF asserts that AI's economic benefits will likely surpass the environmental costs associated with increased energy demand, especially if renewable energy adoption is prioritized.
- Country-Specific Impact: Nations with strong renewable energy bases will experience lower social and environmental costs as they expand AI infrastructure, offering a strategic advantage in sustainable AI development.
- India's Current Position: India’s AI infrastructure, particularly the government-backed IndiaAI Mission, is currently not large enough to significantly strain the national energy mix, but a renewable-centric approach remains essential.
Renewable Energy Opportunities in AI Sector
- Electricity Demand Surge: According to the IMF, AI expansion in the U.S. could raise electricity prices by up to 9%, highlighting the critical need to integrate renewables to mitigate emission surges from conventional power sources.
- Captive Renewable Potential: Data centres offer unique opportunities for captive renewable energy systems; in India, solar cell installations on large data centre campuses are an emerging model.
- Role of Nuclear Energy: Small Modular Reactors (SMRs), alongside renewables, can power emerging data centre hubs, preventing substantial carbon emissions and supporting clean AI expansion.
Broader Environmental Footprint of AI Industry
- Resource Extraction Challenges: The AI industry also demands large-scale mineral mining, water usage, and causes pollution during the manufacturing of electronics, necessitating sustainable resource management.
- Electronics Manufacturing in India: As India aims to expand its electronics manufacturing sector, sustainable practices must be embedded to manage AI-related ecological impacts effectively.
- Alignment with Net-Zero Goals: To achieve its Net Zero 2070 target, India must scale down conventional emission sources while ensuring that AI and electronics industries grow sustainably without exacerbating environmental degradation.
Practice Question
Q. Discuss the environmental challenges associated with the expansion of Artificial Intelligence infrastructure, particularly data centres.
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