Chipmaker says data centers should report energy waste
Onsemi's CEO advocates for data center providers to report energy waste and efficiency, proposing this as an alternative to blanket bans and moratoriums. The company believes clearer data would help address public concerns about grid strain and water use. Onsemi is engaging lawmakers, particularly in Arizona, to discuss these energy transparency standards.
Hassane El-Khoury, CEO of chipmaker Onsemi, has called for data center providers, especially those serving AI, to disclose their energy waste rather than face "short-sighted" blanket bans like the one enacted in New York. During a tour of Onsemi's East Fishkill, New York, manufacturing facility, El-Khoury stated that much of the opposition stems from a lack of understanding about the technology and its implications. He emphasized that policymaker focus should be on identifying specific issues rather than broadly rejecting AI infrastructure.
Onsemi produces power chips that increase energy conversion efficiency in data centers, which reduces electricity loss as heat and subsequent water demand for cooling. El-Khoury noted that public concerns often revolve around potential strain on local grids, increased electricity bills, and depletion of water supplies. To address these, Onsemi is engaging federal and state lawmakers, beginning in Arizona where the company is based, to push for energy transparency standards.
He clarified that a data center's announced gigawatt capacity typically refers to maximum consumption, suggesting a more useful metric would compare AI compute generation against grid power draw. Despite opposition, El-Khoury confirmed that demand for data centers is not slowing Onsemi's business, with AI data centers being their fastest-growing segment. He also warned of a looming global shortage of power chips, which he believes will become apparent once current memory and compute chip bottlenecks are resolved, highlighting the increasing power demands of all technology.