DeepSeek's Energy Use: Impact on AI-Fueled Power Boom
Australian Financial Review
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Details
- Date Published
- 29 Jan 2025
- Priority Score
- 2
- Australian
- No
- Created
- 8 Mar 2025, 02:41 pm
Description
NextDC’s CEO says data centre power use will not fall after US energy stocks were smashed by expectations DeepSeek will pierce AI-fuelled electricity demand.
Summary
The article examines the impact of China's AI challenger DeepSeek on the global energy market, particularly the expected reduction in electricity demand from data centers due to DeepSeek's more energy-efficient AI technology. This development has led to market concerns, resulting in significant declines in US natural gas futures and electricity supplier shares. The technological advance by DeepSeek challenges assumptions on the power consumption needs of AI, suggesting a potential shift in energy demand trends. Although the article primarily focuses on energy market dynamics, it highlights the implications of AI advancements on existing infrastructure and energy consumption, contributing to discussions on efficient AI deployment and policy adjustments.
Body
CompaniesEnergyPrint articleAngela Macdonald-SmithandPaul SmithJan 29, 2025 – 2.40pmSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginChina’s artificial intelligence challenger DeepSeek has punctured expectations of a boom in electricity demand from the world’s energy-hungry data centres as assumptions about the sophistication of the AI era are tested by the Chinese start-up’s arrival.Investors are concerned that more energy-efficient deployment of AI, as demonstrated by DeepSeek’s claim of requiring fewer chips than Silicon Valley bots, could cut long-term demand for gas. US natural gas futures plunged almost 14 per cent this week, while some electricity suppliers suffered share price drops of more than 20 per cent on Wall Street on Monday. Those losses were partially retraced in Tuesday’s session.Loading...Angela Macdonald-Smithwrites on the resources industry with a focus on energy, including gas, oil, electricity and renewables.Connect withAngelaonTwitter.EmailAngelaatamacdonald-smith@afr.comPaul Smithedits the technology coverage and has been a leading writer on the sector for 20 years. He covers big tech, business use of tech, the fast-growing Australian tech industry and start-ups, telecommunications and national innovation policy.Connect withPaulonTwitter.EmailPaulatpsmith@afr.comSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreEnergyElectricityAIRenewablesCarbon challengeInfrastructureNEXTDCMorgan StanleyAGL EnergyDonald TrumpNvidiaWoodside Energy GroupOrigin EnergyFetching latest articlesOlympic weightlifting is hard. This boss uses the 1pc rule to get it doneLucy DeanOut-of-control watch price rises give housing a run for its moneyKnow your craft: How the biggest airlines rate at the pointy end‘We’ll fight’: Alex Waislitz on family battles and bad betsPatrick DurkinJob appointments have never been purely merit-based: CEW chiefWhy this CEO saves creative work for after her periodNew Zealand pops its cork for one of the world’s great wine festivalsMax AllenWhy Hawaii’s data-driven wellness retreat is a haven for high-flyersA last-chance tote bag and a groovy case for trumpetersVictor Smorgon’s star fundie eyes 50pc returns for new fundAlex GluyasForrest family powerbroker had alleged role in big Fortescue decisionsEllison-run garnet mine faces punishment over unsanctioned development