TKS Session 17: AI x Energy

This session is the next part of the theme for January, which is AI and how it’s implemented in different industries. The industry we focused on in this session is AI and the energy sector.

We jumped right into the session, doing a SotW, which was PESTEL analysis. PESTEL analysis is a method used to analyze all the external factors that influence the performance of a company. Here’s a diagram we reviewed during the session that breaks down PESTEL really well:

PESTLE analysis diagram

We practiced implementing PESTEL with a case study that ties AI x Energy, focused on the company Starcloud. Starcloud is a company that aims to send AI-driven data centres into space to shift production and infrastructure costs on Earth. The idea is that, in space, there is orbital solar power and space-based cooling that could shift AI’s energy costs from Earth-based grids to an orbital energy system. But, while the idea is innovative and promising, there are many external factors to consider beyond just the technicals within the company. One of the main concerns is that by the time Starcloud is ready to properly launch and scale (beyond their current pilot programs), technology for current data centres will have advanced so much that there would be no need to use Starcloud’s technology. This is where PESTEL analysis can help, where we can analyze the current state of Starcloud’s competitors and other influencing factors to help determine an educated decision about continuing Starcloud’s development.

Connected to analyzing Starcloud’s case, we also reviewed a highly detailed simulation that is supposed to illustrate the results and consequences of Starcloud’s general technology. The simulation took published studies and data and compiled them into a simulation dashboard that could be customized to review the different possible outcomes of utilizing Starcloud and similar technologies.

After comparing the simulation and reviewing the Starcloud case, we conducted a PESTEL analysis for Starcloud, reviewing each of the different components of PESTEL. Here is what our PESTEL analysis looked like:

I had to leave early from this session, so this is the most I did during that time. Overall, I found the Starcloud case to be really interesting, and I thought its different perspective of moving data centres to space was really smart and innovative. If timed properly, I personally think it’s a very promising innovation. I’m really enjoying the AI industry application theme for January and can’t wait to see what’s next!