TECH

Stargate to Harness Solar Energy and Battery Power for $100 Billion AI Initiative

The enormous $100 billion Stargate collaboration is expected to be fueled, at least partially, by solar energy and batteries.

According to a Bloomberg report, renewable energy installations will be constructed by SB Energy, which is backed by SoftBank. However, they are unlikely to be the only power source for the venture. Stargate is a collaboration between OpenAI, Oracle, and SoftBank Group, aiming to establish a number of new data centers to support artificial intelligence initiatives.

The surge in cloud computing and AI has prompted developers and technology firms to race towards securing energy resources. The U.S. Department of Energy forecasts that data centers could account for up to 12% of all electricity generated in the U.S. by 2028, a significant increase from 4.4% in 2023. This impending challenge may result in 50% of new data centers being underpowered by 2027.

Nuclear energy has become increasingly favored among data center developers and tech companies. Google recently signed a 500-megawatt agreement with nuclear startup Kairos, and Microsoft is reviving one of the inactive reactors at Three Mile Island. Additionally, data center operator Switch disclosed a deal in December with Oklo, a small modular reactor company backed by Sam Altman, for 12 gigawatts of capacity.

However, nuclear’s recent track record is marred by budget overruns and delays. Many of the new nuclear startups emerged to tackle these issues by modularizing and mass-producing reactor components. If all goes according to plan, this method could expedite the approval and construction processes for new nuclear facilities.

Despite advancements, no startup has yet finalized a reactor, and their first commercial reactors are not projected to start operating until 2030, which does little to alleviate the immediate energy crisis. Natural gas power stations, another potential energy source for data centers, will also require years to construct.

In contrast, solar and wind farms can be built much more rapidly. Compared to nuclear and natural gas facilities, they can often be completed in about half the time, according to a study analyzing 50 years of power plant projects. More recent data indicates that the average completion time for a solar power plant is roughly 18 months. Due to their modular nature, they can begin generating electricity even before the entire project is finalized.

The most time-consuming part of any solar initiative is the permitting and interconnection phase, where the facility is linked to the electrical grid. For data centers, grid connections may not be mandatory — many could draw power directly from the source. Considering the evident urgency surrounding Stargate, it’s plausible that the permitting process could be expedited as well, positioning solar as the leading contender for the initial data centers.

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