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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
The rise of AI is revolutionary, but it's also creating a huge energy crisis. Turns out, AI isn’t just smarter than us, it’s hungrier too. Who knew machines could have such an appetite for power?
AI's explosive growth has led to the construction of massive data centers worldwide. There's a facility (owned by Databank) in Virginia that uses as much energy as 30,000 homes. Globally, there are more than 7,000 data centers built, up from 3,600 in 2015.
Capital Expenditure on Data Centers
The actual investment by companies into data centers has jumped in recent years. Global data center spending increased from $140 billion in 2012 to $222 billion in 2023. These massive spending plans underscore the important role data centers will play in supporting our infrastructure.
Also important, energy demand from data centers is outpacing the supply, causing strain on power grids. Global data centers consumed 460 TWh of electricity in 2022, with projections reaching up to 1,000 TWh by 2026 due to AI and cryptocurrency mining. This dramatic increase is comparable to the total electricity consumption of some large countries (For reference, Japan uses only 913 TWh per year)
Goldman Sachs estimates that US utility companies will need to invest $50 billion in new power generation capacity. This investment is crucial to support these new energy demands, and could lead to higher energy prices for consumers in the near-term.
The surge in data center energy demand could also derail global renewable energy goals. This trend is part of a larger issue where technology's growth outstrips our infrastructure's ability to keep up.
AI data centers are rapidly increasing energy demands, straining power grids, and posing challenges. How do you think we'll balance the benefits of AI with the need for sustainable energy?