The quest for artificial intelligence supremacy is heating up in the Seattle area.
Amazon recently announced its plan to invest over US$150 billion (RM713 billion) in data centres worldwide over the next 15 years.
Data centres have evolved significantly since their origins in the 1940s, growing in importance with the rise of the Internet and cloud computing.
Today, data centres are crucial due to the demand for AI applications.
Tech giants and startups are racing to capitalize on the increasing need for AI solutions, driven by corporations, governments, and individual customers like streaming services such as Netflix.
Amazon, based in Seattle, dominates the cloud computing market with a market share nearly double that of its closest competitor, Microsoft.
“We’re expanding capacity significantly,” said Kevin Miller, a vice president at Amazon Web Services, the unit responsible for cloud computing and other services at Amazon. “I think that just gives us the ability to get closer to customers.”
As part of its investment, Amazon plans to enhance current server hubs in Virginia and Oregon, as well as expand to new locations like Phoenix, Texas, Mississippi, Saudi Arabia, and Malaysia.
Amazon’s commitment to data centres surpasses that of competitors like Microsoft and Google, with the company also investing in AI startup Anthropic to fuel the AI arms race.
Seattle’s startup ecosystem is also thriving in the AI space, with companies like Read AI securing funding to offer AI-driven productivity tools.
Economist David Autor, known for his work on the impact of technology on the labor market, has become optimistic about AI’s potential to boost middle-skill jobs in the US.
He believes that generative AI can create new opportunities in areas like healthcare, software, education, and legal services. Despite concerns about automation, Autor sees AI as a tool to enhance human judgment and lower costs for essential services.
While some predict that generative AI could automate millions of jobs globally, others like Autor see AI as a force for job creation and economic growth.
However, data centres pose challenges such as high water usage, energy consumption, and environmental impact.
A study found that data centres are among the top water-consuming industries in the US, raising concerns in water-stressed regions like Arizona and California.
Issues like poor design, limited expansion space, and energy demands also affect the operation of data centres, prompting protests against companies like Amazon for their environmental practices.
As AI’s electricity demand surpasses that of electric vehicles, companies like Amazon are under pressure to transition to renewable energy sources to power their data centres.
The debate over the ethical use of AI continues, with Elon Musk warning about potential risks while acknowledging its benefits.
As AI continues to evolve, its impact on employment, industries, and society remains uncertain, presenting both opportunities and challenges for the future.
Despite the advancements in AI technology, this column is still written by a human, highlighting the ongoing role of human intelligence in the AI era.
