AI Inference as Relocatable Electricity Demand: A Latency-Constrained Energy-Geography Framework
AI inference is becoming a persistent and geographically distributed source of electricity demand. Unlike many traditional electrical loads, inference workloads can sometimes be executed away from the user-facing service location, provided that latency, state locality, capacity, and regulatory constraints remain acceptable. This paper studies when such digital relocation of computation can be interpreted as latency-constrained relocation of electricity demand. We develop an energy-geography framework for geo-distributed AI inference. The framework models a three-layer architecture of clients, service nodes, and compute nodes, and formulates inference placement as a constrained optimization problem over electricity prices, marginal carbon intensity, power usage effectiveness, compute capacity, network latency, and migration frictions. The key object is the energy-latency frontier: the marginal cost and carbon benefit unlocked by relaxing inference latency budgets. The paper makes four contributions. First, it distinguishes physical electricity transmission from digital relocation of electricity-consuming computation. Second, it formulates a geo-distributed inference placement model with feasibility masks and migration frictions. Third, it introduces operational metrics, including relocatable inference demand, energy return on latency, carbon return on latency, and a relocation break-even condition. Fourth, it provides a transparent stylized simulation over representative global compute regions to show how heterogeneous latency tolerance separates workloads into local, regional, and energy-oriented execution layers. The results show that latency relaxation expands feasible geography, while migration frictions, egress costs, state locality, legal constraints, and capacity limits can sharply reduce realized benefits.
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