Tech sector's energy transition draws attention at Vegas show

This year, the focus has shifted slightly towards companies dedicated to energy, indicating a greater emphasis on integrating tech and energy sectors for more sustainable solutions, still with a focus on innovative products and cutting-edge technology, the annual Consumer Electronics Show (CES) has not historically given much attention to energy companies.

At this year's Las Vegas event, subtle changes were evident, as the tech sector starts to address its substantial energy requirements, which are set to escalate with the progression of cloud computing and artificial intelligence.

"I would not have seen the point in attending CES five years ago," said Sebastien Fiedorow, CEO of the French start-up Aerleum, which creates synthetic fuel from carbon dioxide (CO2).

"We're now in a very different CES than we were five years ago," he stated to AFP, noting that while energy companies are still on the periphery, "we're certainly here to remain".

"This is a good initial chance," he said.

By 2028, it is estimated that data centers may account for 12% of US electricity needs, which stood at around 4.4% in 2023, as per the US Department of Energy.

Gary Shapiro, chief executive of the Consumer Technology Association, which organizes CES, stated that energy transition was intended to be "a big focus" of this year's show.

"It's something we've discussed for quite a while," he mentioned, emphasizing that the tech industry demands "groundbreaking solutions" to guarantee that it maintains the strength it needs to continue progressing.

'Not the most sexy'

Among the companies exhibiting innovative technology at CES, which concluded on Friday, was the Dutch company LV Energy, which produces electricity from sound and vibrations.

General Director Satish Jawalapersad stated that the company's participation at the exhibition was quite remarkable.

"We're here at CES, which indicates that we're definitely on the right path," he said.

But LV Energy failed to mention artificial intelligence in its presentation, indicating that it likely downplayed interest, with AI being "the magic word," at CES.

"We may not be the most attractive ones to say such words," he said to AFP.

Other energy companies also recognized a challenge to break through.

DataGreen, another French company, targets constructing miniature, eco-friendly data centers that operate on sustainable energy sources, thereby enabling tech companies to decrease their data storage expenditures by minimizing costs.

DataGreen's head of AI, Julien Choukroun, notes that cloud computing giants have demonstrated little interest thus far.

"They currently do not understand the benefits of partnering with DataGreen, but we are trying to persuade them," Choukroun said.

The company received a innovation award at CES this year, marking its first time participating at the event, and Choukroun emphasized the importance of their services.

We can't keep expanding hangar space for data centers," he said, pointing out that the available land for such facilities "is not endless.

He expressed confidence that once Big Tech recognizes that DataGreen can indeed provide cost savings, then that will be a more compelling reason than the "green" aspect considered on its own.

Changing mindsets

Otrera's product manager, Jordan Huyghe, stated that a significant shift in the connection between technology and the energy sector will necessitate financial investment from corporate leaders such as Amazon, Google, and Microsoft.

Amazon is now the biggest consumer of clean energy globally.

In September, Microsoft entered into an agreement with Constellation Energy to re-open the Three Mile Island power plant in the US state of Pennsylvania, where a serious nuclear meltdown occurred in 1979.

The energy generated by the plant will be used to power Microsoft's data centers.

Solutions, Huyghe said, can come from companies large enough in funds to support them.

He pointed out that to make progress on projects like these, one must secure financial resources,

While interest appears lukewarm for smaller players, Jawalapersad of LV Energy noted that his company has "numerous leads" in the United States.

There is no doubt that the focus of the technology sector on energy is expanding rapidly.

The technologies that we make relate to fuel production and are actually quite distinct from the emphasis of the Consumer Electronics Show.

Aer-leum's presence in Las Vegas indicates that a shift in mindset is indeed evident.