The rise of artificial intelligence and cryptocurrency industries has significantly impacted the energy requirements of data centers, leading to new challenges and opportunities in the power sector. West Cummins, co-founder of Applied Digital, highlights the critical role of affordable power in maintaining the efficiency and cost-effectiveness of these facilities.

One key point Cummins makes is the existence of “stranded energy” in various locations, such as North Dakota. This refers to excess energy production that has no local consumers. Companies in the AI and Bitcoin mining industry are taking advantage of these situations by building data centers near these sources of low-cost, fixed-price energy. This strategy allows both AI and Bitcoin mining operations to access cheap and efficient power for their computationally intensive processes.

By locating their facilities close to these underutilized energy sources, companies can significantly reduce their operational costs while also making use of energy that would otherwise go to waste. The approach demonstrates a growing trend in the tech industry to seek out and leverage affordable and sustainable energy solutions to power the increasing demands of AI and cryptocurrency operations.

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