Telcos need to have a #nuclear strategy, if they are serious about playing in the #cloud, edge & AI market. I've written a full article exploring this critical issue (link in comments).
Both fixed and mobile operators, especially national incumbents, have started discussing GPU-aaS offerings, creating “AI factories” or evolving internal compute used for future RAN (AI-RAN) or fixed infrastructure, to provision of external AI services for domestic companies and governments.
Yet to do this at scale will need gigawatts of extra power.
Existing power purchasing agreements (PPAs) will not cover that. In many countries there are huge demands for other forms of renewable power such as wind & solar, from other industrial sectors. Telcos have enough energy committed for their own use, to meet carbon / emissions goals - but not to add additional compute at scale.
Existing energy supplies are 90% needed to run the network. At best, operators have a few 10's or maybe low 100's of MW spare for customer-facing compute.
The notion that telcos (and developers) can simply carve out some “edge inferencing” workloads, and have them run in a toaster’s-worth of spare power at a cell site are naive.
By contrast, many of the hyperscale and tech companies, as well as datacenter / colo owners have got long-term nuclear PPAs, or are working with partners to deploy small modular reactors (SMRs) onsite, or accessible with private distribution grids. They are looking at licensing and policy aspects, and working with infrastructure investors.
Microsoft, Meta, Oracle, Equinix, Amazon, Google, Mistral (in France), Switch and others have taken concrete actions.
Yet telcos? Virtually nothing, beyond a few long-term speculative VC investments in fusion startups.
It's time to get serious. If telcos want to compete in AI, they need similar energy strategies to AI leaders.
Yes, the regulatory and policy issues will be a minefield. It doesn't help that often there's direct contradictions between telecom, AI, energy, sustainability and geopolitical policies in national capitals and also Brussels. Some countries still haven't woken up to the yawning chasm between energy supply and demand - or realised that 24/7 5-nines reliability is going to need "dispatchable" power.
The next time you hear any telco exec or policy wonk bemoaning the US or other countries’ cloud/AI hegemony, ask a simple question:
“Where is your next gigawatt coming from?”
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