Grid Enhancements Are Vital to Power Artificial Intelligence (AI) and Distribute Renewable Energy

It’s easy for the average consumer or businessperson to take electricity for granted. Power is generated in some distant plant, runs through high-power transmission lines (part of “the grid”) that are generally out-of-sight, and jumps into service when you turn on a light switch. Nonetheless, the U.S. and other top economies could easily run up against big constraints to economic growth and digital transformation unless they invest heavily and quickly in expansion and modernization of the highly complex electric grid.

The rising demand for electricity, driven by technological advancements and policy shifts, underscores the urgent need for investment in the U.S. electric grid. Historically stable for decades, electricity demand has spiked dramatically in recent years, with projections indicating the need for increased power generation equal to tens of gigawatts by 2030. (A gigawatt, or GW, is enough energy to power about 750,000 typical American homes.) This shift is attributed to three primary factors: industrial expansion and overall growth in economic output, the booming rise of server farms that run hundreds of thousands of new servers for generative AI (GenAI) and the retirement of traditional energy generation facilities, particular coal-fired and nuclear generation plants.

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