08 Nov 2024
44m

The energy economics of our civilization’s digital cathedrals

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Riskgaming

The rapid proliferation of data centers, driven by both traditional compute and the rise of artificial intelligence, is fundamentally reshaping global energy demand. Mark Mills, a senior fellow at the Texas Public Policy Foundation, highlights that data centers now represent the largest source of new electricity consumption, with AI serving as an accelerant rather than the sole driver. These "digital cathedrals" require massive capital investment but offer little long-term employment, challenging the economic development incentives often provided to them. Furthermore, the concept of an "energy transition" is a historical fallacy; human progress consistently involves adding new energy sources rather than abandoning existing ones. As economic growth and technological advancement continue to demand more power, the reliance on hydrocarbons remains entrenched, contradicting the optimistic, static models often used in current energy policy planning.

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