Chip-company CEO says we need to solve AI's 'insatiable' hunger for energy

Arm Holdings CEO Rene Haas
Arm Holdings CEO Rene Haas, seen here in 2023, says AI's hunger for energy is "insatiable" and could slow down innovation in the field. Michael M. Santiago/Getty Images
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AI has an "insatiable" hungry for more power — and if AI firms don't figure out how to be more energy efficient, it'll slow down research, the CEO of a top chip design firm said.

Arm CEO Rene Haas told The Wall Street Journal that AI can't keep devouring so much energy at huge data centers if the industry wants to keep advancing.

"It's going to be difficult to accelerate the breakthroughs that we need if the power requirements for these large data centers for people to do research on keeps going up and up and up," Haas said.

If progress isn't made, "by the end of the decade, AI data centers could consume as much as 20% to 25% of US power requirements," Haas told the Journal. "Today, that's probably 4% or less."

Haas did not immediately respond to a request for comment from Business Insider.

It's a warning sign for the buzzy AI field that's courted major investment from Wall Street's top firms.

In March, The New Yorker reported that ChatGPT uses more than half a million kilowatt-hours of electricity daily. The average US household uses just 29 kilowatt-hours each day.

By 2027, the energy required by the sector could spike to match countries the size of Sweden, according to another recent study.

Meanwhile, data centers are sprouting up and changing the rural American landscape, as environmentalists warn of potential repercussions.

UK-based Arm, which SoftBank Group owns, is contributing to a $110 million program for AI research between the US and Japan at top universities in each country.

Amazon and Nvidia are also participating in the program, according to the Journal, which was spearheaded by Rahm Emanuel — the US ambassador to Japan — to help both countries better compete against China.

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Geoff Weiss
Geoff Weiss is a senior reporter on Business Insider’s tech team, where he covers Nvidia and AI infrastructure. His reporting focuses on the business of AI compute, emerging startups, and the people and strategies shaping the industry.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at gweiss@bjinnox.com, on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.