As the AI boom increases power consumption, Phaidra is aiding companies in efficiently managing datacenter power

Electricity demand is experiencing a surge due to the rapid expansion of AI technologies.

According to a May 2024 report from Goldman Sachs, data centers are expected to consume 8% of the U.S.’s total power supply by 2030, up from 3% in 2022. This significant increase is driven by cloud service providers scaling up to meet the growing demand for AI infrastructure. To support this expansion, U.S. utilities may need to invest approximately $50 billion in power generation capacity over the next decade.

However, this growth comes with potential negative consequences. In Kansas, for instance, Evergy, a power utility, delayed the retirement of a coal plant by up to five years due to the increased energy demands from Meta’s new server complex. Experts warn that these power-intensive data centers, which also consume large amounts of water, could lead to higher utility costs, disproportionately affecting low-income households.

Addressing these challenges, Phaidra, founded in 2019, specializes in retrofitting existing facilities for improved energy efficiency. The company employs AI-powered control systems in data centers, pharmaceutical facilities, and commercial buildings. These systems analyze real-time data from thousands of sensors to optimize cooling processes, which typically account for about 40% of a data center’s total energy consumption.

Phaidra’s approach highlights a proactive solution to mitigate the environmental impact of data center operations while enhancing operational efficiency in energy-intensive sectors.