#data center industry report
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narwatharsh01 · 10 months ago
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Data Center Market Size, Growth, Trends, and Future Outlook
The data center market is experiencing explosive growth, fueled by the ever-increasing demand for data storage, processing, and connectivity. These facilities, which house the computing infrastructure powering our digital world, are witnessing a surge in investment and innovation. This article explores the current state of the data center market, analyzing its size, growth trajectory, key trends, prominent players, and future outlook.
Market Size and Growth:
The data center market size was valued at $229.23 billion in 2023 and is projected to reach $640.77 billion by 2032, representing a Compound Annual Growth Rate (CAGR) of 12.10%. This rapid expansion is driven by factors such as:
The rise of cloud computing: Businesses are increasingly migrating their applications and data to the cloud, necessitating the construction of new data centers by cloud providers.
Growing internet penetration: As more users and devices connect to the internet, the demand for data storage and processing capabilities increases.
The proliferation of data-driven technologies: Artificial intelligence, big data analytics, and the Internet of Things (IoT) are creating an exponential growth in data generation, requiring robust data center infrastructure.
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Market Trends:
Several key trends are shaping the data center market landscape:
Shift towards hyperscale data centers: Large, centralized data centers built by major cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform are becoming increasingly dominant.
Emergence of edge computing: Data processing is migrating closer to the source, with smaller edge data centers being deployed closer to users and devices to reduce latency and improve responsiveness.
Focus on sustainability: As environmental concerns mount, data center operators are adopting energy-efficient technologies and renewable energy sources to minimize their carbon footprint.
Growing demand for colocation: Businesses are opting for colocation services, where they rent space and resources in a data center owned by another company, to avoid the upfront costs and operational complexities of building and managing their own data centers.
Data Center Companies:
The competitive landscape of the data center industry is marked by the presence of key players, each contributing to the market's growth and innovation. Amazon Web Services (AWS), Microsoft Corporation, and Google Cloud are among the major players dominating the cloud services segment, offering scalable and reliable infrastructure to businesses globally.
In addition to cloud providers, there are prominent data center infrastructure players like Dell Technologies, Hewlett Packard Enterprise (HPE), and Cisco Systems. These companies provide a range of hardware solutions, including servers, storage, and networking equipment, essential for building and maintaining data center facilities.
Moreover, colocation service providers like Equinix, Digital Realty, and CyrusOne offer facilities where multiple customers can house their servers and networking equipment. Colocation services are gaining popularity due to their cost-effectiveness and the ability to provide businesses with flexible and scalable infrastructure.
Data Center Market Research Reports:
To gain comprehensive insights into the data center market, businesses and industry stakeholders turn to data center market research reports. These reports provide valuable data, market trends, and forecasts, aiding decision-makers in making informed choices.
According to recent research, the Asia-Pacific region is anticipated to witness the highest growth in the data center market, driven by the rapid digitization of economies, increased internet penetration, and the surge in mobile device usage. Additionally, reports highlight the rising significance of modular and containerized data centers as a cost-effective and scalable solution for businesses with varying infrastructure needs.
Market Outlook:
The data center market is expected to continue its strong growth trajectory in the coming years, driven by the factors discussed above. The increasing adoption of cloud computing, big data, and AI, coupled with the growing need for secure and reliable data storage, will further fuel market expansion. Additionally, the rise of emerging economies, particularly in Asia Pacific, will present significant growth opportunities for data center operators.
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Data Center GPU Market Size & Growth
[259 Pages Report] The data center GPU market size was valued at USD 14.3 billion in 2023 and is estimated to reach USD 63.0 billion by 2028, growing at a CAGR of 34.6% during the forecast period.
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The Plumbing Power Tools Market to Hit $5.23 Billion – Direct Sales Channel to Elevate the Market Revenue - Arizton
According to Arizton’s latest research report, the plumbing power tools market is growing at a CAGR of 5.14% from 2023 to 2029.
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To Know More, Click: https://www.arizton.com/market-reports/plumbing-power-tools-market
New construction projects and renovations of bathrooms and kitchens in residential and non-residential buildings drive the plumbing component market. Replacement of damaged or broken parts will increase sales of plumbing power tools. In addition, new owners would do some renovation work in cases where houses, bungalows, or apartments are sold. Installing modern sanitary instead of out-of-date equipment is another aspect of selling plumbing components. Manufacturers have taken advantage of the market expansion opportunity to broaden their product offerings to consumers and expand into new geographies. They have used various tactics, such as introducing new products, business acquisitions, and growth.
The Growing Dominance of Asian Manufacturers Booming the Market Demand
For the developed nations, a technological leap in manufacturing became imperative. Trends have revealed that countries undergoing structural shifts from low-tech to high-tech manufacturing have witnessed substantial increases in GDP per capita over several decades. Japan and South Korea serve as prime examples of such transformations. In these economies, while low-tech industries continue to provide significant employment opportunities at lower income levels, the primary driver of productivity gains lies within the high-tech sector. Governments and institutional reforms have played a pivotal role in promoting high-tech industry to break free from the middle-income trap. This shift is expected to significantly propel the markets for machines, thereby supporting the demand for the plumbing power tools market.
Moreover, APAC anticipates a heightened presence in manufacturing over the next decade. This presents ample opportunities for ancillary manufacturers, precision parts contract manufacturers, and power tool manufacturers specializing in high-end specialized assembly processes. These opportunities stem from a large and expanding end-user base and the potential for technology collaborations with emerging countries to cater to the escalating growth in demand.
Direct Sales will Lead the Market with $1.9 Billion, whereas Online Retailers Growing at the Fastest Rate in the Plumbing Power Tools Market by 2029
Direct sales for plumbing power tools involve manufacturers or dedicated distributors selling directly to end-users, bypassing traditional retail channels. This model gives manufacturers control over marketing, sales, and customer interaction, leading to a more personalized customer relationship. Sales are conducted through online platforms, manufacturer websites, phone orders, or face-to-face interactions, allowing professionals such as plumbers and contractors to purchase tools with ease and direct access to the source. This approach benefits manufacturers by giving them control over pricing, promotions, and the ability to tailor products to specific customer needs. Direct interactions help establish closer customer connections, providing valuable feedback for product improvement.
Additionally, manufacturers can engage in educational initiatives, offering product demonstrations, online tutorials, and informational materials to enhance customer understanding and satisfaction. For professionals in the plumbing industry, direct sales offer straightforward negotiations, customization options, and potential cost savings, making it an efficient and practical choice. However, challenges include building brand awareness, managing logistics, and competing with established retail channels. Some manufacturers may use a hybrid approach, combining direct sales with retail partnerships to broaden their market reach. The success of direct sales depends on strategic positioning, effective marketing, and meeting the needs of a competitive market.
Online retailers may offer competitive pricing, discounts, and promotions, attracting cost-conscious consumers and businesses seeking value for their money. The availability of efficient delivery options enhances the overall customer experience, especially for professionals with time-sensitive projects.
Amazon is one of the largest e-commerce platforms globally, and it offers a vast selection of plumbing power tools from various brands and sellers. The platform's user-friendly interface, customer reviews, and efficient delivery options contribute to its popularity among consumers and professionals. Furthermore, Home Depot, a major home improvement retailer, has a robust online presence, providing customers with the convenience of browsing and purchasing plumbing power tools from the comfort of their homes. The online platform complements its physical stores, offers delivery services, and provides in-store pickup options.
The Plumbing Power Tools Market Report Encompasses Crucial Data, including:   
Market size and growth forecast for 10 years from 2020-2029    
CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the plumbing power tools market over the specified time frame.  
Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the plumbing power tools market growth from 2023 to 2029. This includes an analysis of various market influences.  
Precise estimation of market size: Accurate assessments of the plumbing power tools market size and its contribution, focusing on key market segments.  
Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the plumbing power tools market, helping businesses prepare for future market dynamics.  
Geographical market growth: The report covers the development of the plumbing power tools market across different regions, including North America, Europe, APAC, Latin America, the Middle East, and Africa. This provides a comprehensive understanding of the market's global landscape.  
Competitive landscape analysis: A thorough examination of the market's competitive landscape is presented, including detailed information about companies operating in the plumbing power tools market. This includes an overview of key players, their market share, strategies, and key developments.  
Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the plumbing power tools market, providing a well-rounded view of the market dynamics.  
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avikabohra6 · 11 months ago
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chandupalle · 11 months ago
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https://thearabianpost.com/releases/?rkey=20231102EN56536&filter=25965
[259 Pages Report] The data center GPU market was valued at USD 14.3 billion in 2023 and is estimated to reach USD 63.0 billion by 2028, registering a CAGR of 34.6% during the forecast period.
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mohitbisresearch · 1 year ago
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The Asia-Pacific Data Center Liquid Cooling Market is poised for remarkable growth between 2022 and 2027. According to a research report by BIS Research, this market is expected to exhibit a substantial increase, with a projected value of over US$ 663.4 million in 2022, set to soar to an impressive US$ 2,609.1 million by 2027. Anticipated to achieve an outstanding Compound Annual Growth Rate (CAGR) of 31.51% during this period, this growth is attributed to various factors. The data is excluding china region.
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mi-researchreports · 1 year ago
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The Hyperscale Datacenter Market is expected to reach USD 96.14 billion in 2023 and grow at a CAGR of 5.29% to reach USD 124.40 billion by 2028. Hewlett Packard Enterprise Co, Cisco Systems Inc., Huawei Technologies Co., Nvidia Corporation, Quanta Computer Inc. are the major companies.
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reasonsforhope · 8 months ago
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Green energy is in its heyday. 
Renewable energy sources now account for 22% of the nation’s electricity, and solar has skyrocketed eight times over in the last decade. This spring in California, wind, water, and solar power energy sources exceeded expectations, accounting for an average of 61.5 percent of the state's electricity demand across 52 days. 
But green energy has a lithium problem. Lithium batteries control more than 90% of the global grid battery storage market. 
That’s not just cell phones, laptops, electric toothbrushes, and tools. Scooters, e-bikes, hybrids, and electric vehicles all rely on rechargeable lithium batteries to get going. 
Fortunately, this past week, Natron Energy launched its first-ever commercial-scale production of sodium-ion batteries in the U.S. 
“Sodium-ion batteries offer a unique alternative to lithium-ion, with higher power, faster recharge, longer lifecycle and a completely safe and stable chemistry,” said Colin Wessells — Natron Founder and Co-CEO — at the kick-off event in Michigan. 
The new sodium-ion batteries charge and discharge at rates 10 times faster than lithium-ion, with an estimated lifespan of 50,000 cycles.
Wessells said that using sodium as a primary mineral alternative eliminates industry-wide issues of worker negligence, geopolitical disruption, and the “questionable environmental impacts” inextricably linked to lithium mining. 
“The electrification of our economy is dependent on the development and production of new, innovative energy storage solutions,” Wessells said. 
Why are sodium batteries a better alternative to lithium?
The birth and death cycle of lithium is shadowed in environmental destruction. The process of extracting lithium pollutes the water, air, and soil, and when it’s eventually discarded, the flammable batteries are prone to bursting into flames and burning out in landfills. 
There’s also a human cost. Lithium-ion materials like cobalt and nickel are not only harder to source and procure, but their supply chains are also overwhelmingly attributed to hazardous working conditions and child labor law violations. 
Sodium, on the other hand, is estimated to be 1,000 times more abundant in the earth’s crust than lithium. 
“Unlike lithium, sodium can be produced from an abundant material: salt,” engineer Casey Crownhart wrote ​​in the MIT Technology Review. “Because the raw ingredients are cheap and widely available, there’s potential for sodium-ion batteries to be significantly less expensive than their lithium-ion counterparts if more companies start making more of them.”
What will these batteries be used for?
Right now, Natron has its focus set on AI models and data storage centers, which consume hefty amounts of energy. In 2023, the MIT Technology Review reported that one AI model can emit more than 626,00 pounds of carbon dioxide equivalent. 
“We expect our battery solutions will be used to power the explosive growth in data centers used for Artificial Intelligence,” said Wendell Brooks, co-CEO of Natron. 
“With the start of commercial-scale production here in Michigan, we are well-positioned to capitalize on the growing demand for efficient, safe, and reliable battery energy storage.”
The fast-charging energy alternative also has limitless potential on a consumer level, and Natron is eying telecommunications and EV fast-charging once it begins servicing AI data storage centers in June. 
On a larger scale, sodium-ion batteries could radically change the manufacturing and production sectors — from housing energy to lower electricity costs in warehouses, to charging backup stations and powering electric vehicles, trucks, forklifts, and so on. 
“I founded Natron because we saw climate change as the defining problem of our time,” Wessells said. “We believe batteries have a role to play.”
-via GoodGoodGood, May 3, 2024
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Note: I wanted to make sure this was legit (scientifically and in general), and I'm happy to report that it really is! x, x, x, x
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dineshpawar27 · 2 years ago
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probablyasocialecologist · 4 months ago
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Big tech has made some big claims about greenhouse gas emissions in recent years. But as the rise of artificial intelligence creates ever bigger energy demands, it’s getting hard for the industry to hide the true costs of the data centers powering the tech revolution. According to a Guardian analysis, from 2020 to 2022 the real emissions from the “in-house” or company-owned data centers of Google, Microsoft, Meta and Apple are likely about 662% – or 7.62 times – higher than officially reported.
[...]
Even though big tech hides these emissions, they are due to keep rising. Data centers’ electricity demand is projected to double by 2030 due to the additional load that artificial intelligence poses, according to the Electric Power Research Institute. Google and Microsoft both blamed AI for their recent upticks in market-based emissions.
[...]
Whether today’s power grids can withstand the growing energy demands of AI is uncertain. One industry leader – Marc Ganzi, the CEO of DigitalBridge, a private equity firm that owns two of the world’s largest third-party data center operators – has gone as far as to say that the data center sector may run out of power within the next two years.
15 September 2024
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love-and-deepspace-wiki · 27 days ago
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Hunter's Association: Recruitment Process
Details:
Throughout the game, we are given various pieces of information regarding the Hunter's Association's enlistment/recruitment process. From what has been mentioned in-game, the recruitment process follows the below progression. Each stage will be expanded upon in this post:
Candidate Stage
Exams
Selection Process
New Recruit Registration Center
Annual Badge Ceremony
First Mission
Sector Assignment
Training
Recruitment Stages:
Candidate stage:
All new recruits enter the process as candidates. Evidence of this can be seen during the badge ceremony. Prior to her officially becoming a hunter, the protaganist is called to the stage as "candidate 792350". On the podium display, her candidate number is shown in the upper left (see Annual Badge Ceremony).
Exams:
There are multiple hunter's exams that a Deepspace Hunter must pass. The protaganist mentions having had one exam after another, resulting in her pulling all-nighters. Here are the specific exams mentioned in-game:
First-Aid Exam
Hunter's Exam
Hunter's Association Licensure Exam (aka Hunter's License Exam)
Hunter's Qualification Exam
Theoretical Exam
"UNICORNS theory test for new hunters"
Selection Process:
Upon passing their exams, recruits then proceed to the selection process. During or after this stage, the rookie list is released to the public. It is at this point that team captains can pick rookies for their teams.
Deepspace Hunter Authentication:
At the beginning of the Main Story, the protaganist is shown entering an elevator (left). Once inside, authentication is conducted (top right) and her identity is verified (bottom right).
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New Recruit Registration Center:
After the authentication checks are complete, the elevator takes her to the New Recruit Registration Center. What specifically occurs at this center is not mentioned in-game.
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Annual Badge Ceremony:
The badge ceremony is an annual event where badges are handed out to new Deepspace Hunters. Since the rookies shown in the room are all wearing the black and purple hunter uniform, they must have been given to them prior to this stage. Interestingly, the protagonist is the only candidate wearing a basic hunter uniform.
The ceremony is held at Linkon City, Hunter's Association HQ (top). Once you are called to the podium, your personal information is verified and facial data is collected. Once complete, your candidate number, name, DOB, Evol, Evol level, and assigned sector are displayed (left).
You are then officially a Deepspace Hunter and are given your badge (right), Hunter's Watch, and Hunter's Firearm.
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First Mission:
On the protaganist's first mission, Captain Jenna is her UNICORNS captain. At this stage, she is a member of the UNICORNS team, but has yet to be assigned to a specific sector.
After their first mission, their performance is recorded and used to assign them to the appropriate sector. The sector assignments are released via the Hunter's Watches, which they must report to at 8 AM the following morning.
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Training:
Hunter Bootcamp:
Hunter Bootcamp is a stage available shortly after a new Deepspace Hunter enters the industry. In this boot camp, hunters are trained in basic combat techniques. These include Hunter Training, Dodge Training, Skill Training, Advanced Training, Shield Breaking Training, and Lock-On Training.
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Weapons Boot Camp:
Weapons Boot Camp becomes available after Hunter Boot Camp is passed. In this stage, new hunters receive training on various weapons including Firearm Training, Sword Training, Claymore Training, and Wand Training.
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Freestyle Training:
After Weapons Boot Camp is completed, new hunters then progress to freestyle training. This stage includes Attack Training and Shield Breaking Training. The final component of this training is a non-stop combat training ground.
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Deepspace Trials:
Deepspace Trials are a holographic training simulation developed by the Hunter's Association and the World Evol Bureau of Technology. It is now available for every Deepspace Hunter. The advanced tech will simulate Wanderer of different types, levels, and the appropriate combat environment to help hunters grow. They provide a training ground tailored to the challenger's Evol. Open Orbit serves as a comprehensive training ground that all hunters can access. On the other hand, Directional Orbits are specifically designed to simulate Wanderers and battlefields based on certain Evols.
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Hunter's Academy:
In Sylus' Myth story "Captivating Moment", the protaganist mentions the Hunter's Academy. When Sylus asks if she knows how to box, she says she learned the basics at the Hunter's Academy.
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In Rafayel's Tender Moments story "Radiant Halo", the protaganist mentions running with heavy sandbags during training. Since the Academy is the only other training mentioned in-game, it is possible that she was also referring to this here.
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sniperct · 1 month ago
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Its hard to really take out pieces of it, because there's a lot of really good bits that need the context, but it lays out the stark, bare facts about Gen AI and that its all been an expensive and destructive waste of time, money and the environment.
But the author did summarize part of it so I'll paste that here and I recommend reading the whole thing:
The main technology behind the entire "artificial intelligence" boom is generative AI — transformer-based models like OpenAI's GPT-4 (and soon GPT-5) — and said technology has peaked, with diminishing returns from the only ways of making them "better" (feeding them training data and throwing tons of compute at them) suggesting that what we may have, as I've said before, reached Peak AI.
Generative AI is incredibly unprofitable. OpenAI, the biggest player in the industry, is on course to lose more than $5 billion this year, with competitor Anthropic (which also makes its own transformer-based model, Claude) on course to lose more than $2.7 billion this year.
Every single big tech company has thrown billions — as much as $75 billion in Amazon's case in 2024 alone — at building the data centers and acquiring the GPUs to populate said data centers specifically so they can train their models or other companies' models, or serve customers that would integrate generative AI into their businesses, something that does not appear to be happening at scale.
Their investments could theoretically be used for other products, but these data centers are heavily focused on generative AI. Business Insider reports that Microsoft intends to amass 1.8 million GPUs by the end of 2024, costing it tens of billions of dollars.
Worse still, many of the companies integrating generative AI do so by connecting to models made by either OpenAI or Anthropic, both of whom are running unprofitable businesses, and likely charging nowhere near enough to cover their costs. As I wrote in the Subprime AI Crisis in September, in the event that these companies start charging what they actually need to, I hypothesize it will multiply the costs of their customers to the point that they can't afford to run their businesses — or, at the very least, will have to remove or scale back generative AI functionality in their products.
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MRI Contrast Media Market is Poised to Achieve $1.97 Billion by 2029 – Exclusive Research Report by Arizton
According to Arizton’s latest research report, the MRI contrast media market is growing at a CAGR of 5.20% during 2023-2029.  
To Know More, Click: https://www.arizton.com/market-reports/mri-contrast-media-market
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Advancements in MRI technology drive the demand for more effective and specialized contrast agents. Companies investing in research and development to create cutting-edge products gain a competitive advantage. The rising prevalence of chronic diseases, including cardiovascular diseases and cancer, fuels the demand for advanced diagnostic imaging, driving the growth of the MRI contrast media market. The development of safer contrast agents, personalized medicine approaches, and the integration of AI are likely to shape the future of the market. As healthcare systems worldwide place an increasing emphasis on early and accurate diagnosis, the demand for advanced imaging technologies and contrast agents is expected to rise, providing opportunities for market expansion.
APAC Region Witnesses Explosive Growth in MRI Contrast Media Market Fueled by Medical Advancements and Increased Health Spending
·        APAC countries are investing in expanding and modernizing their healthcare infrastructure, including the establishment of advanced diagnostic imaging centers and hospitals equipped with MRI scanners.
·        Advances in MRI technology, such as high-field MRI systems, multi-parametric imaging techniques, and functional MRI, require specialized contrast agents to enhance image quality and diagnostic accuracy.
·        Growing awareness among healthcare professionals and patients about the benefits of early detection and accurate diagnosis of diseases has led to higher utilization of MRI contrast media for diagnostic purposes.
·        Government initiatives aimed at improving healthcare access, promoting preventive care, and enhancing medical infrastructure have contributed to the expansion of the MRI contrast media market in the APAC region.
Vendor Landscape
Bayer is a leading pharmaceutical and life sciences company with a strong presence in the MRI contrast media market. The company's commitment to innovation and research has allowed it to develop and market a range of contrast agents for various MRI applications. GE Healthcare is a global conglomerate with a significant presence in the healthcare sector, including medical imaging. GE Healthcare offers a variety of MRI contrast agents, contributing to its competitiveness in the market.
Guerbet is another key player specializing in medical imaging products, including contrast media for MRI. The company's focus on R&D has enabled it to introduce innovative contrast agents with improved safety and efficacy profiles. Bracco is a leading player in the global imaging diagnostics industry, with a notable presence in the MRI contrast media market. The company's emphasis on product development and strategic collaborations enhances its competitive position.
Standalone Imaging Centers End-User to Hold the Largest Market Share
MRI contrast media significantly enhance the diagnostic precision of imaging studies. By highlighting specific structures or abnormalities, contrast-enhanced MRI allows for more accurate identification and characterization of tissues, aiding in the detection and diagnosis of various medical conditions.
The availability of MRI contrast media in standalone imaging centers expands the range of clinical applications. Beyond routine anatomical imaging, contrast-enhanced MRI is employed in specialized studies, such as angiography, musculoskeletal imaging, and neuroimaging. Furthermore, it provides clinicians with a comprehensive suite of diagnostic tools.
Standalone imaging centers often prioritize patient-centric care, and the incorporation of MRI contrast media aligns with this commitment. The enhanced diagnostic capabilities contribute to more accurate and timely diagnoses, enabling healthcare providers to formulate targeted treatment plans and optimize patient outcomes.
The MRI Contrast Media Market Report Encompasses Crucial Data, Including:   
CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the MRI contrast media marketover the specified time frame.  
Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the MRI contrast media marketgrowth from 2023 to 2029. This includes an analysis of various market influences.  
Precise estimation of market size: Accurate assessments of the MRI contrast media marketsize and its contribution and focusing on key market segments.  
Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the MRI contrast media market helping businesses prepare for future market dynamics.  
Geographical market growth: The report covers the development of the MRI contrast media market across different regions, including North America, Europe, APAC, Latin America, the Middle East, and Africa. This provides a comprehensive understanding of the market's global landscape.  
Competitive landscape analysis: A thorough examination of the market's competitive landscape is presented, including detailed information about companies operating in the MRI contrast media market. This includes an overview of key players, their market share, strategies, and key developments.  
Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the MRI contrast media market, providing a well-rounded view of the market dynamics.  
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avikabohra6 · 2 years ago
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rjzimmerman · 18 days ago
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Excerpt from this story from Heated:
Energy experts warned only a few years ago that the world had to stop building new fossil fuel projects to preserve a livable climate.
Now, artificial intelligence is driving a rapid expansion of methane gas infrastructure—pipelines and power plants—that experts say could have devastating climate consequences if fully realized.
As large language models like ChatGPT become more sophisticated, experts predict that the nation’s energy demands will grow by a “shocking” 16 percent in the next five years. Tech giants like Amazon, Meta, and Alphabet have increasingly turned to nuclear power plants or large renewable energy projects to power data centers that use as much energy as a small town.
But those cleaner energy sources will not be enough to meet the voracious energy demands of AI, analysts say. To bridge the gap, tech giants and fossil fuel companies are planning to build new gas power plants and pipelines that directly supply data centers. And they increasingly propose keeping those projects separate from the grid, fast tracking gas infrastructure at a speed that can’t be matched by renewables or nuclear.
The growth of AI has been called the “savior” of the gas industry. In Virginia alone, the data center capital of the world, a new state report found that AI demand could add a new 1.5 gigawatt gas plant every two years for 15 consecutive years.
And now, as energy demand for AI rises, oil corporations are planning to build gas plants that specifically serve data centers. Last week, Exxon announced that it is building a large gas plant that will directly supply power to data centers within the next five years. The company claims the gas plant will use technology that captures polluting emissions—despite the fact that the technology has never been used at a commercial scale before.
Chevron also announced that the company is preparing to sell gas to an undisclosed number of data centers. “We're doing some work right now with a number of different people that's not quite ready for prime time, looking at possible solutions to build large-scale power generation,” said CEO Mike Wirth at an Atlantic Council event. The opportunity to sell power to data centers is so promising that even private equity firms are investing billions in building energy infrastructure.
But the companies that will benefit the most from an AI gas boom, according to S&P Global, are pipeline companies. This year, several major U.S. pipeline companies told investors that they were already in talks to connect their sprawling pipeline networks directly to on-site gas power plants at data centers.
“We, frankly, are kind of overwhelmed with the number of requests that we’re dealing with, ” Williams CEO Alan Armstrong said on a call with analysts. The pipeline company, which owns the 10,000 mile Transco system, is expanding its existing pipeline network from Virginia to Alabama partly to “provide reliable power where data center growth is expected,” according to Williams.
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mohitbisresearch · 2 years ago
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