As Artificial Intelligence (AI) continues to grow in both business and personal applications, the energy required to support this technological surge must also expand. This dynamic raises important questions for the energy sector: Will the energy sector be able to add new power plants and transmission at the pace required to serve the data centers Big Tech want to build?
The article, “Could AI Find its Limit in the Power Grid,” published by T&D World, examines the mounting challenges presented by surging AI and data center electricity demands. These pressures are straining the existing power grid and driving unprecedented collaboration between utilities and developers.
CRA energy experts Matt DeCourcey, Anant Kumar, James Russell, Oliver Stover, and Emma Nicholson provide their valuable perspectives on escalating energy needs, the increasing influence of Big Tech in the power sector, uncertainties in data center demand forecasting, and the evolving partnership between data centers and utilities.
The article’s key insights include:
- AI and data centers are contributing to unprecedented growth in electricity demand, and the energy industry may struggle to keep pace.
- Forecasting data center demand is increasingly viewed as uncertain, which complicates resource planning for utilities and grid operators.
- Big Tech companies are driving the need for new energy infrastructure, often making long-term commitments to secure energy supply.
- Utilities are making significant capital expenditures to develop new transmission and generation capacity to support data center growth.
- Close collaboration between data centers and utilities is essential for coordinated planning and sustainable expansion.
Real the full article here.
