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Business

Jensen Huang says AI data centers can fix the very grid they’re straining

Business Insider ·
Jensen Huang says AI data centers can fix the very grid they’re straining

Nvidia CEO Jensen Huang says the entire AI ecosystem has "to do a much better job working with the communities" on data centers.

Bloomberg/Getty Images Nvidia CEO Jensen Huang says the industry has to do a "better" job working with communities.

Huang is the latest voice in tech to acknowledge that something has to change.

Polling shows many in the US have turned hard against data center construction.

Nvidia CEO Jensen Huang says the AI industry needs to do "better" when it comes to data centers.

"The technology industry, the builders, and, have to do a much better job working with the communities to get prepared for this AI infrastructure build-out," Huang told CNBC's Jim Cramer on Wednesday when asked about how Nvidia's customers could show communities they are serious about data center concerns.

Huang is the latest voice in tech, and arguably the biggest so far, to acknowledge that the industry has to do a better job of selling communities on building data centers.

Polling shows that Americans have become deeply skeptical of the massive facilities that house the advanced chips that train and serve AI demand.

Huang said the industry needs to sell the idea that data center construction can help reindustrialize the nation.

Addressing a frequent concern, Huang said data centers could actually lower energy costs.

"It is also the case this is the first time in probably the last century that we're able to invest in sustainable energy, invest in improving our energy grid, securing our energy supply, reducing the cost of energy across the country," he said.

"This is the first time in history that we're able to do that because of the enormous market dynamics, the market forces that are able to invest in the energy ecosystem." Business Insider has previously reported that rapid data center expansion could increase electricity costs .

A recent study by researchers at the Massachusetts Institute of Technology found that data centers could reduce consumer costs by adjusting their power consumption.

The MIT researchers found that data centers that shift their power consumption to off-peak hours could lower average energy costs by up to 4% in the Mid-Atlantic, 5% in Texas, and 2% in 11 western states compared to facilities that didn't change their consumption patterns.

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