The Future of Electricity Demand in the AI Era

Grid Strategies’ Rob Gramlich discusses the dramatic increase in electricity demand from data center and manufacturing growth, and the challenges it presents for the grid.  --- Electricity demand growth has returned with a vengeance in the United States due to an increase in manufacturing and, most dramatically, the growing use of AI. Across the country, technology giants are racing to build AI data centers, the largest of which will consume as much electricity as an entire mid-sized city. Yet our electrical grid was not built with such large and immediate new sources of power demand in mind, and it has become clear that solutions are urgently needed if our grid is to successfully accommodate this new load. Adding to the challenge is the fact that forecasts of future demand have been frequently and dramatically revised upwards. The future of electricity demand looks big, but just how big remains uncertain. Rob Gramlich, president of power sector consultancy Grid Strategies and a frequent expert witness on grid issues before Congress and regulatory agencies, explores the future of electricity demand. Gramlich discusses data from a new Grid Strategies report on the pace of demand growth, and a variety of strategies by which our electric grid might meet that demand. He also considers implications for the cost of electricity and the pace of grid decarbonization. Rob Gramlich is president of Grid Strategies. Related Content Should ‘Energy Hogs’ Shoulder More of the Utility Cost Burden? https://kleinmanenergy.upenn.edu/research/publications/should-energy-hogs-shoulder-more-of-the-utility-cost-burden/ How Can We Improve the Efficiency of Electricity Pricing Systems? https://kleinmanenergy.upenn.edu/research/publications/how-can-we-improve-the-efficiency-of-electricity-pricing-systems/ Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.