Anthropic's AI Model Claude 3.7 Sonnet Takes on Pokémon Red in Live Twitch Stream
Anthropic's latest AI model, Claude 3.7 Sonnet, showcases its capabilities by playing Pokémon Red on Twitch, sparking both fascination and nostalgia among viewers.
Max Carter
A looming power crunch threatens to undermine the rapid growth of AI and cloud computing, but a new report suggests that a solution lies beneath the foundations of data centers. Advanced geothermal power could supply nearly two-thirds of new data center demand by 2030, according to an analysis by the Rhodium Group. This would quadruple the amount of geothermal power capacity in the U.S., from 4 gigawatts to about 16 gigawatts, while costing the same or less than what data center operators pay today.
In the Western U.S., where geothermal resources are more plentiful, the technology could provide 100% of new data center demand. For example, Phoenix could add 3.8 gigawatts of data center capacity without building a single new conventional power plant. This is a significant development, given the growing energy demands of data centers and the need for sustainable solutions.
Geothermal resources have enormous potential to provide consistent power. Historically, geothermal power plants have been limited to places where the Earth's heat seeps close to the surface. However, advanced geothermal techniques could unlock 90 gigawatts of clean power in the U.S. alone, according to the U.S. Department of Energy. These techniques involve drilling deeper and wider than before, allowing access to hotter rocks and more power.
A surge of startups in the geothermal sector has been driven in part by knowledge and technology borrowed from oil and gas companies. Fervo Energy, founded by former oil and gas engineers, is expanding geothermal's potential using horizontal drilling techniques perfected over the last few decades. The company raised over $200 million in 2024 on the heels of significant cost reductions in well drilling.
Bedrock Energy is another startup that is drilling deep to minimize geothermal's footprint, allowing space-constrained office buildings and data centers to extract more power from their limited footprints. The company's specialized drilling rigs bore down more than 1,200 feet to tap consistent heat year-round.
Quaise Energy's technology is particularly innovative, using microwaves generated by gyrotrons to vaporize rock. By skipping traditional drill bits, Quaise hopes to drill as deep as 12.4 miles (20 kilometers), where the rocks are nearly 1,000 degrees F year-round, offering nearly limitless amounts of heat to drive generators or warm buildings.
Sage Geosystems is taking a different approach, using the Earth's ability to store energy. The startup is injecting water into wells under pressure, and when power is needed, it can open the taps and run the water through a turbine, similar to an upside-down hydroelectric dam.
The cost-effectiveness of geothermal power is a significant advantage. Because geothermal power has very low running costs, its price is competitive with data centers' energy costs today, according to the Rhodium report. When data centers are sited similarly to how they are today, geothermal power costs just over $75 per megawatt hour. However, when developers account for geothermal potential in their siting, the costs drop significantly, down to around $50 per megawatt hour.
The report assumes that new generating capacity would be "behind the meter," which is what experts call power plants that are hooked up directly to a customer, bypassing the grid. This is an attractive option for data center operators who are scrambling to build new capacity, as wait times for new power plants to connect to the grid can stretch on for years.
The potential implications of advanced geothermal power are significant. As the demand for data centers continues to grow, the need for sustainable and cost-effective energy solutions will only increase. If geothermal power can supply nearly two-thirds of new data center demand by 2030, it could play a critical role in mitigating the looming power crunch and supporting the continued growth of AI and cloud computing.
In conclusion, the emergence of advanced geothermal power as a viable solution to the data center energy crunch is a significant development with far-reaching implications. As the sector continues to evolve, it will be important to monitor its progress and potential impact on the tech industry as a whole.
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