Chart of the week: AI's carbon footprint


Fadah Jassem
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The computational power needed to support the growth of artificial intelligence is doubling about every 100 days.

To achieve a tenfold increase in AI model development, the demand for computational power could increase by as much as 10,000 times. This means the energy required for AI tasks is accelerating fast, with an annual growth rate of between 26 per cent and 36 per cent. By 2028, AI could consume more electricity than the entire country of Iceland did in 2021, the World Economic Forum said.

On average, OpenAI's generative AI platform ChatGPT uses significantly more energy than a traditional Google search – up to 10 times more power in some predictions.

This also means there is a growing global demand for data centres to run AI supercomputers. The power consumption of those centres is expected to double by 2030 to 150 gigawatts, rising to 330GW by 2040. This would require $600 billion in annual infrastructure investments and 80 million kilometres of power grid upgrades by 2040.

But it is not only the power used to run the supercomputers at data centres that is the issue, the servers that power those applications also need to be cooled. New analysis had shown that ChatGPT, which uses the GPT-4 language model, consumes 519 millilitres, or a little more than one bottle of water, to write a 100-word email, according to The Washington Post in research collaboration with the University of California, Riverside. The same 100-word email generated by an AI chatbot using GPT-4 requires the same amount of energy it takes to run 14 LED light bulbs for one hour, The Washington Post added.

However, GPT prompts are not the biggest energy drain. Most power is consumed during the training of the GPT language model, which relies on powerful supercomputers processing vast amounts of text from the internet and various other sources. Analysis by TRG Datacentres examined the energy use of leading chatbots based on the time it took to train the models, processing power and model architecture, such as the number of parameter searches, and found that Microsoft Bing consumed more than five times more energy than ChatGPT-3.

As AI technology progresses, its energy demands are surging. By 2030, Gartner Consulting predicts that AI could account for up to 3.5 per cent of global electricity consumption – twice the energy demand in France. This directly effects climate change, driving an increase in greenhouse gas emissions.

Researchers are developing energy-efficient models and optimised algorithms to mitigate AI's carbon footprint. A report from Adnoc, Masdar and Microsoft, presented this week at Adipec 2024 in Abu Dhabi, highlighted the potential of AI to improve traditional energy practices, enhance energy efficiency and accelerate the transition to cleaner energy sources.

Balancing AI's potential with its impact is quickly becoming one of the tech industry's greatest challenges. But some are looking to address this issue. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc, said at Adipec that: "We are at a pivotal moment for human progress driven by three megatrends: the rise of the Global South, the accelerated energy transition and the rapid growth of AI."

Read more on ADIPEC 2024 and the future of AI search engines.

Various Artists 
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
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THE SPECS

Engine: 3.6-litre V6

Transmission: nine-speed automatic

Power: 310hp

Torque: 366Nm

Price: Dh200,000

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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While you're here
The Little Things

Directed by: John Lee Hancock

Starring: Denzel Washington, Rami Malek, Jared Leto

Four stars

THE SPECS

Engine: 3.6-litre V6

Transmission: eight-speed automatic

Power: 285bhp

Torque: 353Nm

Price: TBA

On sale: Q2, 2020

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Final scores

18 under: Tyrrell Hatton (ENG)

- 14: Jason Scrivener (AUS)

-13: Rory McIlroy (NIR)

-12: Rafa Cabrera Bello (ESP)

-11: David Lipsky (USA), Marc Warren (SCO)

-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Updated: February 28, 2025, 6:18 AM