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by jillesvangurp 916 days ago
Depends how and where you source your energy. If you invest in your own solar panels and batteries, all that energy is essentially fixed price (cost of the infrastructure) amortized over the lifetime of the setup (1-2 decades or so). Maybe you have some variable pricing on top for grid connectivity and use the grid as a fallback. But there's also the notion of selling excess energy back to the grid that offsets that.

So, 10kwh could be a lot less than what you cite. That's also how grid operators make money. They generate cheaply and sell with a nice margin. Prices are determined by the most expensive energy sources on the grid in some markets (coal, nuclear, etc.). So, that pricing doesn't reflect actual cost for renewables, which is typically a lot lower than that. Anyone consuming large amounts of energy will be looking to cut their cost. For data centers that typically means investing in energy generation, storage, and efficient hardware and cooling.

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During the crypto boom there were crypto miners in China who got really cheap electricity from hydroelectric dams built in rural areas. Shipping electricity long distance is expensive (both in terms of infrastructure and losses - unless you pay even more for HVDC infrastructure), so they were able to get great prices as local consumers of "surplus" energy.

That might be a great opportunity for cheap LLMs too.