With many Americans opposing the construction of giant AI data centers in their neighborhoods, some tech companies are proposing an unconventional solution: attaching mini data centers directly to people’s houses. At least one major startup backed by Nvidia is looking into this prospect, though it will likely prove controversial.
How would these mini data centers work?
People typically associate data centers with big buildings churning out massive quantities of AI datasets. But the home version would be a “unit about the size of an air conditioner, mounted in the side yard,” said Scientific American. It could perform “artificial intelligence tasks, drawing power from your home’s energy supply” and theoretically “earning you discounted electricity and internet in exchange.”
Most of the attention has been focused on Span, an electrical panel startup that recently began manufacturing these types of units in partnership with Nvidia. The company said its mini data centers would be “less of a financial burden on residents” and “have a potentially lower ecological footprint than warehouse data centers,” said Fortune. Span’s units are also quiet, thereby “mitigating the problem of noise pollution that has drawn the ire of residents of areas with nearby warehouse data centers.”
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Industry experts hope the home models like those proposed by Span could help alleviate the financial and energy constraints created by large buildings; a typical AI data center “consumes as much electricity as 100,000 households,” according to the International Energy Agency. Instead of “building a single large data center that requires its own substation upgrade or on-site gas turbines,” the AI “spreads compute across thousands of homes that are already connected to the grid,” said Scientific American.
What has the reaction been?
Creating more energy-friendly data centers is a “cool idea on paper, but it’s almost completely unproven in real-world use,” said Fast Company. And even if the home data centers took off, the “main point of resistance” is the fact that these centers “will result in higher electric bills for everyone in the area,” even if they are at people’s homes. Whether it’s a “new central data center or a distributed data center,” the “risk of higher costs — perhaps because of transformers and other infrastructure running hotter and degrading more quickly — could arguably be the same.”
Politically, gathering power from existing homes “may be easier than talking a city council into issuing a permit for a data center,” said Fast Company. But all of this is a moot point if tech companies are unable to perform the “tangled math of coordinating thousands of tiny residential energy resources to fuel the energy beast that data centers are,” said The Arizona Republic. While “distributed power generation has been around for years,” it has never “been harnessed at the scale needed for feeding data centers.”
Officials with Span remain optimistic that the home-based products will work. “There is certainly opportunity, as Span can provide homeowners with access to innovative technology and potential income generation that can help offset monthly energy costs,” a spokesperson for the company told Inc. “On a larger scale, if the technology proves out, it might also keep local infrastructure from being overburdened, which could keep land open for other uses, such as building homes.”
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