Andrew Steinwold, Managing Partner at Sfermion, a venture fund focused on the metaverse, recently highlighted a significant shift in the understanding of the metaverse, extending its impact beyond user experience to the complete digitization of labor. In a social media post, Steinwold expressed his astonishment at the rapid pace of this transformation, stating, > "I viewed the metaverse as primarily a user centric phenomena (spending most of our waking hours in digital environments). While that is correct, I did not account for labor itself being completely digitized so soon." This evolving perspective points to a future where both white-collar and blue-collar work are increasingly integrated into digital environments.
The digitization of white-collar work is primarily driven by advancements in Artificial Intelligence (AI). Generative AI, in particular, is poised to impact a wide array of professional tasks, potentially automating routine cognitive functions and reshaping traditional office roles. Experts suggest that AI's unique ability to improve itself over time could lead to more far-ranging effects on the workforce than previous automation technologies.
Concurrently, the blue-collar sector is experiencing significant digitization through the combination of robotics and AI. Industrial robots are already commonplace in manufacturing and logistics, taking on tasks that are often hazardous or repetitive. While this can lead to job displacement in some areas, it also creates new demands for skilled workers who can maintain, operate, and program these advanced machines, enhancing safety and efficiency in various industries.
This pervasive digitization of labor, coupled with the expansion of user-centric metaverse applications, is fueling an unprecedented surge in demand for underlying infrastructure. The International Energy Agency (IEA) projects that global electricity consumption from data centers, driven by AI and increasing digitalization, could double by 2026, reaching over 1,000 terawatt-hours. This monumental energy requirement underscores Steinwold's observation, > "Is the energy + data center infra chart just a continuous growth line in perpetuity from this point on?"
The increasing reliance on digital infrastructure for both work and leisure necessitates substantial investment in new electricity generation capacity and grid development. As the boundaries between physical and digital labor continue to blur, the implications for global energy consumption and the structure of the future workforce become increasingly profound, suggesting a continuous evolution of how humanity engages with labor and technology.