The next era of energy deployment will be rooted in the demand for new power from the artificial intelligence (AI) and data center growth expected over the next decade. While Goldman Sachs forecasts that global demand from data centers will increase by 50% in 2027, and as much as 165% by 2030, the reality is that the grid is too old to support energy-hungry AI. The grid is burdened by insufficient transmission and outdated infrastructure, which means the existing grid simply cannot support the insatiable demand. This leaves big tech and utilities in a bind as these industries attempt to balance meeting demand with supplying a new epoch of power with limited solutions.
Although a fully decarbonized energy system is ideal for reducing America’s carbon emissions, many renewable industries are either too nascent or too expensive to meet data center demand. In order to meet near-time demand, an “All of the Above” energy approach is going to be the more practical solution for alleviating the grid while advancing American AI.
AI’s Thirst For Energy Demands An “All of the Above” Approach | ESG Review
