Surging AI use drives utility upgrades
AI and data centre growth are pressuring US power grids like never before.
The rapid rise of AI is placing unprecedented strain on the US power grid, as the electricity demands of massive data centres continue to surge.
Utilities nationwide are struggling to keep up, expanding infrastructure and revising rate structures to accommodate an influx of power-hungry facilities.
Regions like Northern Virginia have become focal points, where dense data centre clusters consume tens of megawatts each and create years-long delays for new connections.
Some next-generation AI systems are expected to require between 1 and 5 gigawatts of constant power, roughly the output of multiple Hoover Dams, posing significant challenges for energy suppliers and regulators alike.
In response, tech firms and utilities are considering a mix of solutions, including on-site natural gas generation, investments in small nuclear reactors, and greater reliance on renewable sources.
At the federal level, streamlined permitting and executive actions are used to fast-track grid and plant development.
‘The scale of AI’s power appetite is unprecedented,’ said Dr Elena Martinez, senior grid strategist at the Centre for Energy Innovation. ‘Utilities must pivot now, combining smart-grid tech, diverse energy sources and regulatory agility to avoid systemic bottlenecks.’
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