
Why is it a good thing?
AI optimizing 10 to 30 percentage for an average company, an average country, an average city. This number is way higher than the energy consumed by AI.
Nvidia’s AI Chips: Consuming More Power Than Entire Nations
In the rapidly evolving world of artificial intelligence, Nvidia’s AI chips have become indispensable. However, their widespread adoption comes with a significant energy cost. As we look ahead to 2024, the energy consumption of Nvidia’s AI GPUs, particularly the H100 model, is set to surpass the annual power usage of several small countries.
A Power-Hungry Giant
Each H100 GPU consumes up to 700 watts of power. With an estimated 3.5 million units expected to be sold by the end of 2024, the total energy consumption of these GPUs could reach approximately 13,092 gigawatt-hours (GWh) annually. To put this into perspective, this amount of energy is comparable to the annual power consumption of countries like Georgia, Lithuania, and Guatemala.
Efficiency Improvements
Despite the high energy demands, Nvidia has made significant strides in improving the efficiency of their GPUs. The GH200 superchip, which combines a Grace CPU and an H100 GPU, has been recognized for its power efficiency, achieving up to 72.7 gigaflops per watt. This demonstrates Nvidia’s commitment to balancing performance with energy efficiency.

Long-Term Trends
Over the past decade, Nvidia has shifted its focus from gaming GPUs to AI and high-performance computing (HPC) solutions. These newer solutions are more energy-intensive but also offer greater efficiency in terms of performance per watt. This transition reflects the growing demand for powerful AI capabilities across various industries.
Comparative Consumption
The sheer scale of energy consumption by Nvidia’s AI GPUs is staggering. The combined power usage of H100 GPUs alone is similar to the annual energy consumption of entire nations. This comparison highlights the immense energy requirements of modern AI technologies and underscores the need for continued advancements in energy efficiency.
As Nvidia continues to innovate and expand its AI capabilities, the challenge will be to manage the energy demands of these powerful processors. Balancing the benefits of cutting-edge AI with sustainable energy practices will be crucial for the future of technology.
The Power Behind the Intelligence
Artificial intelligence (AI) is rapidly transforming our world, but its growth comes at a significant cost: energy consumption. As AI models become more complex and powerful, the computational resources required to train and run them escalate, leading to a surge in energy demand.
The Energy Footprint of AI Chips
One of the primary drivers of AI’s energy consumption is the hardware used to power it. High-performance computing (HPC) chips, such as Nvidia’s H100, are specifically designed for AI workloads. These chips are incredibly powerful but also highly energy-intensive.
According to estimates, a single H100 GPU can consume approximately 3,740 kilowatt-hours (kWh) of electricity annually when utilized at 61%. With millions of these chips deployed worldwide, the total energy consumption is staggering.
The Accelerating Demand for Computational Power
The computational power required to sustain AI’s progress is doubling roughly every 100 days. This exponential growth means that the energy demand for AI tasks is also accelerating, with an annual growth rate between 26% and 36%.
To put this into perspective, the annual power consumption of some countries, like Georgia, Lithuania, or Guatemala, is comparable to the energy used by AI chips. While this may seem alarming, it’s important to note that AI and HPC GPU efficiency is improving. Newer generations of chips, like Nvidia’s Blackwell-based B100, offer higher performance while consuming less power.
The Hardware Hunger of AI Models
The scale of AI models is also a significant factor in energy consumption. Large language models like GPT-4 require thousands of HPC chips to train. For example, GPT-5 is estimated to need between 30,000 and 50,000 H100s.
Other Factors Affecting Energy Consumption
- Cooling: Data centers require substantial energy for cooling, which can add significantly to the overall energy footprint of AI operations.
- Location: The location of data centers can impact energy consumption due to variations in climate and energy costs.
- Workload: The type of AI tasks being performed and the complexity of the models can influence energy usage.
The Future of AI Energy Consumption
As AI continues to evolve, it is crucial to address the growing energy demands associated with it. Developing more energy-efficient hardware, optimizing AI algorithms, and exploring renewable energy sources are essential steps towards ensuring a sustainable future for AI.
By understanding the energy implications of AI and taking proactive measures to reduce its environmental impact, we can harness the power of AI while minimizing its negative consequences.

The Energy Efficiency Outlook for H200 GPUs
Nvidia’s H200 GPU is poised to offer significant advancements in energy efficiency compared to its predecessor, the H100. While specific performance metrics and energy consumption data are still emerging, based on the information available, we can anticipate several factors contributing to its improved efficiency:
AI’s Potential Power Savings: A Global Perspective
While it’s difficult to provide a specific percentage, studies have shown that AI can reduce energy consumption in factories by 10-30% or more. However, the actual savings will vary based on the factors mentioned above.
AI’s Potential Power Savings: A Global Perspective
The Energy Efficiency Revolution
Artificial intelligence (AI) has the potential to revolutionize energy consumption on a global scale. By optimizing various aspects of our economies, AI can significantly reduce energy waste and improve overall efficiency.
Key Areas of AI-Driven Energy Savings:
- Industry and Manufacturing:
- Predictive Maintenance: AI can predict equipment failures, reducing downtime and energy consumption associated with unplanned repairs.
- Process Optimization: AI can analyze and optimize manufacturing processes to identify inefficiencies and reduce energy usage.
- Supply Chain Management: AI can optimize supply chains, reducing transportation costs and associated energy consumption.
- Transportation:
- Traffic Management: AI-powered traffic management systems can reduce congestion, leading to lower fuel consumption.
- Autonomous Vehicles: Self-driving vehicles have the potential to improve fuel efficiency and reduce accidents, leading to energy savings.
- Buildings and Infrastructure:
- Smart Grids: AI can optimize energy distribution in smart grids, reducing losses and improving efficiency.
- Energy Management: AI can analyze energy consumption patterns in buildings and identify areas for improvement, such as optimizing HVAC systems and lighting.
- Renewable Energy Integration:
- Predictive Forecasting: AI can predict renewable energy generation, enabling better integration into the grid and reducing reliance on fossil fuels.
Potential Power Savings
While it’s challenging to provide a precise global estimate, studies have shown that AI can reduce energy consumption in various sectors by 10-30% or more. If applied across multiple industries and regions, the cumulative savings could be substantial.
For example, if a country could reduce its overall energy consumption by 20%, it would translate into significant savings in terms of both energy costs and greenhouse gas emissions. These savings could be used to fund investments in renewable energy, improve energy infrastructure, or provide financial relief to consumers.
Challenges and Considerations
Implementing AI-driven energy optimization solutions requires significant investment and expertise. Challenges include:
- Data Quality: AI relies on high-quality data to make accurate predictions and recommendations.
- Infrastructure: Implementing AI solutions may require upgrading existing infrastructure, such as sensors and communication networks.
- Cost-Benefit Analysis: The economic benefits of AI-driven energy savings must outweigh the costs of implementation.
Conclusion
AI has the potential to play a crucial role in addressing the global energy crisis. By optimizing various aspects of our economies, AI can significantly reduce energy consumption and improve overall efficiency. As AI technology continues to advance, we can expect to see even greater benefits in the years to come.
List of countries by electricity consumption – Wikipedia
Nvidia’s H100 microchips energy consumption (electronicspecifier.com)
Nvidia H100 GPUs: Supply and Demand · GPU Utils ⚡️ (llm-utils.org)
The AI Boom Could Use a Shocking Amount of Electricity | Scientific American