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Explainer videoJohannes HötterLinkedIn teaser (4:5)

What are AI data centers, actually?

A question about a coffee machine leaves your phone. We follow its path through fiber-optic cables, server racks, GPUs and cooling loops, separating published measurements from open questions.

Buy or rent? Try it.

Example: many AI requests during the day, fewer at night. Both options provide the same assumed computing capacity. Move the sliders and watch how demand peaks and idle time change the costs.

30 %
2.5
00:00 · 11% of one GPU01:00 · 11% of one GPU02:00 · 11% of one GPU03:00 · 11% of one GPU04:00 · 11% of one GPU05:00 · 12% of one GPU06:00 · 14% of one GPU07:00 · 18% of one GPU08:00 · 24% of one GPU09:00 · 35% of one GPU10:00 · 48% of one GPU11:00 · 61% of one GPU12:00 · 72% of one GPU13:00 · 76% of one GPU14:00 · 72% of one GPU15:00 · 61% of one GPU16:00 · 48% of one GPU17:00 · 35% of one GPU18:00 · 24% of one GPU19:00 · 18% of one GPU20:00 · 14% of one GPU21:00 · 12% of one GPU22:00 · 11% of one GPU23:00 · 11% of one GPU1 GPU · reserved00:0006:0012:0018:0023:00
Bars = demand. Dashed line = purchased capacity sized for the peak. Utilization: 30%.
12,000 €
36 months
2 €
0.3 €/kWh
What does the cloud bill for?

Assumption: jobs can be batched and the provider bills only active GPU time. Startup delays, queues, and minimum billing units are not included.

Cloud

€438/ month

€15,779 over 36 months

Owned hardware

€522/ month

€18,789 over 36 months

Owned systems needed: 1 · Upfront purchase: €12,000 · Monthly electricity: €39.

Buying would break even against renting after about 48 months.

More assumptions and calculation
150 €
400 W
80 W

Month = 730.5 hours. Buying: hardware sized for peak demand, spread over the period, plus power and maintenance. Renting: active or reserved GPU hours × hourly price. Power: active hours × working power plus remaining hours × idle power. Prices are adjustable example assumptions; taxes, financing, labor beyond the maintenance allowance, network costs, and resale value are excluded.

A question leaves your phone

Sitting at the kitchen table, you type a simple question into your phone: "I'm looking for a coffee machine under 200 euros that is easy to clean." Moments later, the first words appear on screen. Your phone did not compute that answer by itself.

Behind the word "cloud" sits a physical chain of fiber-optic cables, routers, specialized servers, power grids and cooling systems. Our coffee-machine prompt is a fictional teaching example: we trace the journey of that message from your screen into the server hall and back.

From screen to server hall

As soon as you tap Send, the app packages your prompt together with the conversation history into an encrypted request. Across mobile or Wi-Fi networks and through fiber-optic links, the packet reaches a data center.

There, a front-end gateway coordinates the work: it checks authorization, places the request in a queue and routes it to an available compute node where the language model is already loaded in memory.

What sits inside the server racks

Inside the hall stand long rows of tall metal cabinets called racks. They hold flat server blades equipped with tightly coupled GPUs or AI accelerators that perform many numerical operations in parallel, right next to fast HBM memory holding billions of model weights. High-speed interconnects link multiple chips and racks together whenever a large model does not fit onto a single card.

Two different jobs: Training and answering

Two very different workloads run inside an AI data center:

  1. Training: Thousands of accelerators work together for weeks or months across massive datasets, gradually adjusting the weights of a new model.
  2. Inference (serving): The learned weights sit ready in memory. When your coffee-machine question arrives, the system calculates the most likely continuation token by token and streams the pieces back to your phone.

Electricity, waste heat and cooling

Nearly every kilowatt-hour of electricity drawn by a compute chip turns into heat. To keep densely packed racks within operating temperature, fans or direct liquid-cooling plates carry that heat away.

PUE (Power Usage Effectiveness) compares total facility electricity with the electricity used by IT equipment: a PUE of 1.10 means that for every 1.00 kWh of compute electricity, an additional 0.10 kWh goes to cooling and power distribution. Whether cooling also evaporates water depends heavily on the cooling design, location and weather.

What studies and providers measure and what remains open

The International Energy Agency (IEA) and Lawrence Berkeley National Laboratory (LBNL) document rising data-center electricity demand; AI is a major growth driver alongside traditional cloud computing, video streaming and enterprise software.

For individual text prompts, Google published a measurement in May 2025 for a median Gemini text prompt: roughly 0.24 watt-hours of electricity, about 0.03 grams of CO₂e and 0.26 milliliters of water (around five drops). That figure applies specifically to Google's studied fleet, cooling setup and methodology. For other providers, longer conversations, image or video generation, or multi-step reasoning runs, the exact footprint of a single request remains unknown without comparable measurements.

Three checks for every infrastructure number

Next time you see a headline number about AI power or water use, ask three questions:

  1. Which workload was counted? Months of training, a short text reply or a multi-step agent run?
  2. What is the system boundary? Just the chip, the whole building including cooling, or the local electricity grid mix as well?
  3. Is it a measurement or an extrapolation? Does the figure come from actual operating telemetry or a back-of-the-envelope scenario?

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