AI innovation causes e-waste

The second AI-generated tsunami is at the back end; a stream of used equipment. AI is driving faster server innovation, particularly in chip design, and the latest AI chips such as the Nvidia H100 have had so many billions advanced against their manufacture and are in such short supply that they are even being used as debt collateral and made available for rent.

While this refresh rate will be key to improving efficiency it will also – in tandem with the rise in capacity – increase the scale of e-waste. E-waste is one of the fastest-growing waste streams in the world. By 2030, annual e-waste production is on track to reach a staggering 75 million metric tons.

Global e-waste is thought to hold roughly $60 billion-worth of raw materials such as gold, palladium, silver, and copper. However, just 17 percent of global e-waste is documented to be collected and properly recycled each year.

Rising to the challenge

These waves at the front and back end of the data center will take place as the climate crisis deepens and zero emission targets loom. There will be unprecedented pressure on power grids to provide new electrical power for industries that are weaning themselves off fossil fuels. It is fair to say that generative AI in particular will be under intense environmental scrutiny. To address the twin challenges of capacity growth and e-waste the industry will have to be at the top of its game.