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
President, Grid StrategiesRob Gramlich is Founder and President of Grid Strategies LLC where he provides economic policy analysis for clients on electric transmission and power markets in pursuit of low-cost de-carbonization.
Andy Stone
Energy Policy Now Host and ProducerAndy Stone is producer and host of Energy Policy Now, the Kleinman Center’s podcast series. He previously worked in business planning with PJM Interconnection and was a senior energy reporter at Forbes Magazine.
