Schneider Electric, the leader in the digital transformation of energy management and automation, has officially published the results from two new reports.
Going by the available details, this pair of treads up a long distance to showcase how rapid artificial intelligence (AI) expansion, something projected to contribute up to 50% of U.S. electricity demand growth by 2030, can very well serve as a powerful catalyst in the context of modernizing and strengthening the nation’s energy infrastructure.
Talk about these reports on a slightly deeper level, we begin from the one conducted by Schneider Electric’s Sustainability Research Institute. Named as Powering Sustainable AI in the United States, the study digs into how AI is set to dramatically increase electricity demand and what implications it might have on the future of energy infrastructure.
As for the results, they begin by floating a prediction that AI will drive up to 50% of U.S. electricity demand growth before 2030 rounds up to a close. We get to say so because rapid adoption of AI technologies is creating a surge in electricity demand, thus besting other electrification drivers like transport and heating.
Next up, the research reveals how data center expansion is now enroute to disaster because of infrastructure limitations. This translates to how the currently projected increases of 43–92 GW in data center capacity by 2030 face major hurdles from outdated grid interconnection processes, permitting delays, and supply chain bottlenecks.
Another detail worth a mention relates to those infrastructure deficits that could get AI development to falter. You see, without grid modernization, energy scarcity may hamper innovation and global competitiveness, especially if mitigation efforts focus only on power efficiency.
Joining that would be a piece of detail which tips unchecked demand growth risks to trigger system-wide inefficiencies. As AI power demand could reach 500 TWh by 2030, it could very well overwhelm grid capacity, drive up consumer costs, and encourage oversized, inefficient infrastructure.
Almost like an extension of it, an unmanaged surge can also result in a national or regional energy crisis. In essence, without significant investment to enhance flexibility, distributed energy, and behind-the-meter solutions, power demand may exceed 173 GW by 2030, placing critical pressure on the grid and exposing seven regional operators, including MISO, PJM, and ERCOT, to reserve shortfalls by 2028.
“The rapid and widespread adoption of AI coupled with the soaring demand for electricity are fundamentally reshaping America’s energy landscape”, said Aamir Paul, Schneider Electric’s President of North America Operations. “With concerted efforts and strategic investments, we can ensure that AI’s growth is supported by a robust, efficient, and resilient energy infrastructure, paving the way for greater sustainability.”
Turning our attention towards the other report, it was based on a survey of nearly 150 senior industry professionals. This one focused on assessing the ways in which U.S. data center sector is adapting to the unfolding energy crunch.
Here, the results reveal that it’s taking longer and longer to secure more grid capacity, as nearly 44% of respondents indicate their average quoted utility wait times are longer than 4 years. Grid also emerged as the top concern for new data center projects, with 92% seeing it as the most significant obstacle.
This particular study further revealed how industry is now turning to new regions to get the power it needs. Markedly enough, the top region for “Plan B” power availability, if the first choice couldn’t provide timely power, was deemed to be the Midwest.
Hold on, we still have a couple of bits left to unpack, considering we haven’t touched upon the fact that no.1 region for the fastest time to power in recent years was deemed to be Mountain West.
Rounding up highlights is how 6 in every 10 respondents reported they would deploy on-site power generation systems if they ran into concerns about power availability, emerging as the top-ranked option.
“I’ve been in the power industry over 30 years, and I have never seen a moment like this,” said Juan Macias, CEO of AlphaStruxure. “The findings from this first-of-its-kind survey show the breadth and depth of the energy demand crisis, confirming what we’ve heard anecdotally from our conversations with customers.”
