AI and Cryptocurrency Data Sites North Dakota

Full credit to the Fargo Forum newspaper for their reporting. The above graphic is information they collected with no help from North Dakota. The state itself seems to have no desire to keep track of the huge energy and water consumers in the state and organizations that collect data with seeming no regulation at all. The energy consumption is the equivalent of the Hoover dam and the employment numbers once operational don't seem to rival even the most modest farm processing plant. The campus construction of buildings and roads brings temporary job and start-up money but aside from a new bowling alley, what will these hyperscale camp data centers bringing to our neighbour? And what are the implications for Manitoba?

That is the billion dollar question for North Dakota. It is a supermajority Republican government and the counties have near full control to what they want. The seven large data centers have non-disclosures and all sorts of blocks to finding out who owns them or for what purposes they will serve. The only certainty is they are incredible users of electricity and water. Half the counties in North Dakota have been approached for data centers.

Manitoba and North Dakota have already concerns about the huge expansion of dairy industry near the Red River watershed. In two counties by the river, a 25,000 cow operation and a 12,500 cow operation have been approved. The concerns in both countries is manure spreading to the water of the river  and causing nutrients that are are toxic. There is also the issue of water usage.  It takes 31 liters of water to make 1 liter of milk. That's a lot of water. Add the hyperscale data sites and there could be water shortages. It is entirely possible the Red could be dry by the time it crosses the border.

Industrial farms don't even come close to the massive energy and water needed of hyperscale data centers. Elon Musk is building massive facilities near Memphis and is tapping that state's (and neighbouring state's) energy and water resources for his artificial intelligence GROK. He said he needs he will have exceeds what out sun generates...or the universe. Yes, he said that.

One thing is clear is that hyperscale data centers eat up huge amounts of water and energy. They are extremely hot and extremely noisy. They employ very few people. While the upfront costs are in the billions for what goes into these campuses, the amount of resources needed seems to exceed what any region can provide. It is that enormous. 

It is now beyond the realm of possibility that North Dakota will seek hydro deals with Manitoba to help drive its relentless addition of data centers. This seems unlikely as Manitoba is set to make a sale to Nunavut and has more deals with Saskatchewan coming. We are already about to build gas turbines to cover our own internal shortfalls.

The growth in AI in Canada is also coming. The water and energy resources and cooler temperatures in the country make it inevitable that companies are in the hunt. However, they are also looking for jurisdictions with literally no rules like North Dakota. These companies don't like people people poking into zoning, ownership or what the data center is doing. 

The people who know something about AI say it is about doing things with few workers. In short, ending lawyers, diagnosticians, accountants, ad agencies, actors/directors/writers and so on. The short sightedness of this seems obvious. Who will but these services if no humans and jobs. Perhaps AI will sell to other AI. At some point, will they even need humans? Certainly AI can be a tool but if, as Elon Musk says, this tool requires all the energy of the sun and every bit of water in the solar system, is it really good for us?

Hats of to the Fargo Forum for there investigative journalism.