Investments in Powering Data Centers

MACRO ENVIRONMENT

The core focus of the Sparrow Hills strategy is to participate in building technological and service solutions, EPCM type companies, around clean energy and clean and reliable energy supply to energy intensive data center infrastructure, expecting explosive growth driven by AI and digital economy.

The energy demand for data center infrastructure in the United States has been growing steadily, driven by the increasing reliance on cloud computing, artificial intelligence, and the broader digital economy, including crypto mining. Key factors influencing the expected energy demand include the expansion of data centers, their efficiency improvements, and the shift toward sustainable energy sources.
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    Current Energy Consumption
    As of recent reports, data centers in the U.S. consume about 2% of the nation's total electricity. This figure has been rising steadily over the past decade as demand for cloud services and data storage continues to increase.
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    Future Growth
    The global data center energy demand is projected to increase by 2.5 to 3 times by 2030, with the U.S. expected to follow a similar growth trajectory due to the country's dominant role in cloud and data center services. This means that, by 2030, energy use by U.S. data centers could grow to around 5-6% of national electricity consumption if current trends continue.
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    Energy Efficiency and Sustainability
    Data centers are increasingly focusing on improving energy efficiency and adopting renewable energy sources. Many companies, including major players like Amazon, Microsoft, and Google, have committed to operating their data centers with 100% clean energy. Additionally, newer technologies, such as liquid cooling and AI-based resource management, are helping reduce the overall energy consumption of data.