Five Things to Know About AI’s Thirst for Energy
The challenges created by AI’s thirst for energy are indeed great and uncertain, creating problems for the power sector including timing mismatches and an increasing possibility of shortages. This is a very difficult economic problem.
Most solutions we hear of call for government mandates, subsidies, or large utility projects paid for by taxpayers and/or ratepayers. The best solution gets precious little attention: more economic freedom in the sector. Rather than trying to force top-down “solutions" through political or regulatory bargaining, we need solutions which increase the freedom for new players, new approaches, and new designs.
As Thomas Sowell said, “The most basic question is not what is best, but who shall decide what is best.” The market is best at deciding in all sectors, even in the power sector.
