American Oil and Gas Reporter - July 2024 - 21

Oil And Gas Industry
Offers Answers To
Data Center Questions
" By forging partnerships with data
centers, oil and gas companies can
A recent Silicon Valley technology conference I attended focused
on emerging technology using artificial intelligence and
machine learning. Although you may ask what that has to do
with oil and gas, the simple answer is everything. Data centers
use a lot of electricity and, as it turns out, a lot of freshwater. In
fact, a recent Goldman Sachs report calculates that the United
States alone-excluding cryptocurrency operations-will see
data center power demand climb about 160% between now and
2030. That means an already strained electricity infrastructure
will be further tested in the coming years in the absence of innovations
to power and cool these centers.
Data centers will consume about 200 terawatt-hours of electricity
this year and that appetite is on pace to increase to 286
terawatt-hours in 2025, representing a substantial surge in
energy demand and raising questions and concerns about the
power industry's capacity to handle such a significant increase.
This escalating power consumption underscores the urgent need
for collaborative approaches with energy sector players to
innovate and develop solutions to address such burgeoning
energy challenges.
The use of freshwater to cool data centers is also on the rise,
especially in recent years. According to estimates, a large data
center's cooling needs can consume millions of gallons of
water each day. With the growing demand for AI and machine
learning processes, the need for substantial cooling infrastructure
has become more pronounced. At the conference I heard that
every use of Chat GPT consumes an entire bottle of freshwater,
which is staggering in an environment of increasing global
water scarcity. Nevertheless, as data centers expand and AI becomes
more pervasive, freshwater demand appears likely to increase
even further.
In light of these concerns, the data center industry should
look at collaborating with the oil and gas industry in a way that
benefits both sectors. While oil and gas continue to be the
leading energy sources around the globe, data centers are the
emerging backbone of the digital age, supporting the proliferation
of online services, cloud computing and big data analytics.
However, these facilities' growing energy and water demand is
prompting heightened scrutiny. The traditional method of using
massive volumes of water for cooling is unsustainable, especially
in water-stressed regions.
As data centers continue to expand, it becomes imperative to
adopt more efficient alternative cooling solutions. One innovative
approach recognizes that oil and gas companies have access to
resources-such as locations, water and access to natural gas-
that can benefit the data center industry while positively
impacting the oil and gas sector.
Oil and gas companies can provide data center locations,
leveraging their existing infrastructure and expertise in managing
land and industrial facilities. This collaboration can ensure
reliable and remote operational environments for data centers,
contributing to their overall security and efficiency.
Meanwhile, although produced water is a significant issue
leverage their resources to address these
challenges while creating financial and
operational benefits for the industry.
"
for the oil and gas industry, it may be possible to repurpose
this water for data center cooling systems. Through advanced
treatment processes, produced water may be made suitable for
cooling purposes, reducing the reliance on freshwater sources
and alleviating the burden on local water supplies while
providing a valuable solution for operators seeking to dispose
of produced water.
Moreover, stranded natural gas can be harnessed to generate
locally generated cost-effective power for nearby data centers.
Using this otherwise untapped resource, data center operators
can reduce their reliance on conventional power sources, significantly
decreasing grid load in these areas. This will allow
oil and gas companies to monetize stranded natural gas and diversify
their revenue streams.
In addition to addressing the energy and water challenges,
the collaboration between data center operators and oil and gas
companies may foster cross-industry cooperation, technological
innovation and mutually beneficial financial opportunities. By
combining expertise from the energy and technology sectors,
novel approaches to efficient resource management and energy
production can be developed, benefiting both industries and
their respective market positions.
Data center technology's energy consumption and water
usage present substantial challenges that demand proactive solutions.
By forging partnerships with data centers, oil and gas
companies can leverage their resources to address these challenges
while creating financial and operational benefits for the industry.
Using produced water for cooling and stranded natural gas for
power generation can allow data centers to slash energy consumption
while ensuring reliable and efficient operations. ❒
JEREMY VISCOMI is a strategic
marketing expert for the oil and
gas industry. Among his many
roles, he serves as the MidContinent
regional lead for the
Petroleum Technology Transfer
Council, providing independent
operators with access to emerging
technology aimed at reducing
risk and growing profits.
JULY 2024 21
American Oil and Gas Reporter - July 2024

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