Chipmaker says data centers should report energy waste

Hassane El-Khoury, CEO of chipmaker Onsemi, argues that data center moratoriums are short-sighted and instead, policymakers and critics should demand AI data center providers report how much energy they are wasting. El-Khoury believes that data center moratoriums, like the one enacted in New York, are not the solution, but rather, communities should understand the problems they want to address.

Onsemi produces power chips that convert energy in data centers, cars, and factories, and more efficient power conversion reduces the amount of electricity that data centers lose as heat. The CEO stated that Onsemi is discussing energy transparency standards with federal and state lawmakers, particularly in Arizona, where the company is based.

These standards would focus on reporting how much raw energy a data center consumes and how efficiently it uses the power. El-Khoury noted that the pushback against data centers is partially due to concerns about local grid strain, rising electricity bills, and water supply drainage. Despite the opposition, including the moratorium in New York, AI data centers continue to grow in demand.

The company reported that these centers are its fastest-growing business, with expected revenue to double this year. El-Khoury warned that the power chip shortage is masking the need for power chips, and once the industry clears bottlenecks in memory and compute chips, people will realize that challenges surrounding power will significantly impact various industries.