The Greens are jumping up and down about them. Of course they are. They say they'll suck up power from the grid, push up electricity prices and create only a handful of jobs. That's the problem, apparently.
They're calling for a one-year ban while we sort out some regulations, which is all very well and good, except for two quite important things.
First, most Kiwis use AI, which is basically why we need these centres in the first place. Two-thirds of us have used AI in the past year. It's making our lives and businesses more efficient but that comes at a cost.
An AI search apparently uses at least 10 times the electricity of a Google search. Researchers in the US reckon that a single ChatGPT query, and just think about this next time you type one in, consumes the electrical equivalent of leaving a light bulb on for 20 minutes.
Okay, so it's not cheap. There's no such thing as a free lunch. The more we use it, the more it costs.
Second, when politicians call for moratoriums or bans, it's usually because we don't know enough about something and need more time to figure it out. That is not the case here. Amsterdam imposed a moratorium on data centres in 2019. Ireland effectively restricted them in 2021 and some US states have done the same.
Since then, a lot has changed. There are now rules in place overseas, in certain jurisdictions, that mean data centres essentially have to generate their own electricity. There's no reason we can't, or shouldn't, have similar rules ready to roll out here.
It's the job of politicians, remember. This is pretty much what they do, including this coalition, I might add: keeping on top of the law and what's happening around the world. That's how they justify their overseas junkets, after all, isn't it? They're meant to stay ahead of the curve.
But we're not.
A moratorium on data centres is a very 2019 solution. It's very pre-COVID. Let's not be so pretentious or self-righteous as to believe it's not us driving demand for data.
What we need, and you won't hear me say this often, is rules and regulations that ensure we can keep the lights on while feeding the dirty little AI habit we like to pretend we don't have.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
8 comments:
Strange that this article ignores what is happening overseas in local communities where these hyoerscaler data centres are going in. Strange that it also ignores the issue NZ with constrained power generation. Strange that it also ignores how all AI providers are currently losing profit despite their recent pricing increases.
It must be great being an opinion columnist. If there is a topic of importance, you no longer need to bring any kind of journalistic rigour or curiosity to your work day! You don’t need to check any sources or the facts! You just take the headlines, pick a politician statement, and then write a few paragraphs about that. Just as the billionaire media overlords require.
Moratoriums are the bastion of the fearful, ignorant or just plain stupid. Oh, and of course first port of call for 'indigenous people'.
Firstly the Datagrid AI Farm water useage is minuscule compared to other consented extractions in the area, And in any case only half of the consented water uptake is currently used so we can discount any “draining NZ dry” hysteria around this AI facility.
Secondly, power demand is substantial, but still only half of what Tiwai Point consumes. Southland, Manapouri, Clutha and Waiau River already have the excess capacity to cope with demand in the short term.
Remember the Datagrid facility is to be built over several years so incremental demand, as it build will be addressed through a combination of wind, Solar and Hydro - No problem (unless you’re a Luddite)
The thing about all these datacentres is that you need to ensure that the sovereignty of the data is protected... the data needs to be located onshore, so that it is not only protected under our laws but is able to be secure... and with Govt heading further into AI then the data used and created needs to be held within NZ..
Ryan good article. The DC world is a rapidly changing beast. There appears to be a divergence in the DC landscape. While I'm undecided as to if the mag 7 should be spending the amount of cashflow and incurring debt to develop this technology, I believe that over the long term horizon they (potentially) will return the investment.
While the tech sectors including XSD semiconductors, Cloud computing, Cybersecurity sectors are all trading at high valuations, there are still long term tailwinds that could benefit over the next few decades.
While I admit to owning some DC shares, I prefer to invest in the 'picks and shovels' type companies that provide services and infrastructure to the DC. Better way to reduce risk imo.
Anon 8.45 - you have a firm grasp of the idiot stick, don't you? Ryan doesn't ignore our constrained power grid at all, as you claim. Go and actually read Ryan's excellent article. He states we should be implementing rules that DC's need to generate their own power requirements. I'm all for this. You would have understood that if you actually read the article.
Here's another fact; Microsoft, Amazon, Meta and Google all increased profits in 26, not decreased profits like you claim.
Heres another fact - the hyperscalers are very very different from the speculators who built DC's without securing long term energy contracts. They are the ones hurting.
It must be great being a greenie - 'You don’t need to check any sources or the facts!' You seem to make stuff up as you type, dont you?
It is not rocket science to figure out why a data centre is planned for Southland. The power would come from Manapouri which probably does not always run at full capacity. There is a lot of rainfall in nearby Fiordland which could be tapped into. Also the aluminium smelter is on borrowed time – which would free up a lot more power and eventually bring about more in the way of data centres.
"... justify their overseas junkets..." Didn't our, Chloe travel 'Business Class' not so long ago? Is that what she was doing? I thought it was something to do with reinsurance?
Meanwhile, paper plants, timber mills, and other energy reliant industries are closing down for lack of cost effective energy.
At least they produce products that are useful to society, whereas AI data is at best dubious.
IMHO, NZ should not jump onto the constantly moving bandwagon, but wait a while to see where it's going ?
One of those very, very rare occasions when I agree with Chloe..
Post a Comment
Thank you for joining the discussion. Breaking Views welcomes respectful contributions that enrich the debate. Please ensure your comments are not defamatory, derogatory or disruptive. We appreciate your cooperation.