Written by Isabel Stanley, Dailymail.Com
15:54 07 March 2024, 15:56 07 March 2024 Updated
- Innovations in artificial intelligence, cloud computing, and cryptocurrency mining are driving demand for power-ups
- The already deteriorating national power grid is ill-equipped to handle the increase in demand, which is expected to double this year.
Artificial intelligence data centers and cryptocurrency mining are putting some areas of the United States at risk of power outages and doubling projected energy demand in the coming years.
Without intervention, the already deteriorating national power grid will be pushed to its limits as demand surges driven by rapid innovations such as AI, cryptocurrencies, and clean energy initiatives, all of which will require vast amounts of power. will reach.
Projected electricity demand over the next nine years has more than doubled from 221,000 gigawatt hours last year to 564,000 gigawatt hours this year, according to the North American Electric Reliability Council.
Jason Shaw, chairman of the Georgia Public Service Commission, which regulates electricity, told The Washington Post the numbers were “staggering.”
He said, “You're going to be scratching your head and wondering how we ended up in this situation. Were our predictions that off? This presents challenges like we've never seen before. Was born.”
This increase is primarily driven by the development of AI, cloud computing, and cryptocurrency mining, all of which require large data centers and, as a result, consume enormous amounts of electricity.
The International Energy Agency (IEA) predicts that globally, “power consumption by data centers, artificial intelligence (AI), and the cryptocurrency sector could double by 2026.”
By 2026, they say, the world's data center energy needs will rival the energy needs of all of Japan.
There are currently an estimated 2,700 data centers in the United States, which will consume more than 4 percent of the nation's electricity by 2022, according to the IEA.
They predict that consumption will increase to 6% by 2026.
Some companies are turning to their own forms of power generation to power their centers to avoid long wait times and unreliable supplies from the grid.
Both Microsoft and Google hope that they will eventually be able to power their operations with small domestic nuclear power plants, eliminating the need to rely so heavily on the national power grid.
The production of “clean power” products such as solar panels and electric car batteries is also driving demand, requiring new factories and connections to the power grid.
With demand outstripping supply, shortages are likely across the country, with some regions being hit harder than others.
North American Electric Reliability Corporation (NERC) has created a risk map in its long-term reliability assessment.
They stated that “BPS in North America is on the cusp of massive growth, posing reliability challenges and opportunities to a power grid that was already in the midst of unprecedented change.”
Breaking down by regional power company, NERC predicts the areas covered by MISO and SERC will be the hardest hit.
They define high risk as meaning that “power supply to these regions is likely to be short during the forecast period and more stable resources are needed.”
High-risk areas include: Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin. Includes parts of the state.
Meanwhile, the country's west is at “increasing risk” of supply shortages over the next four years.
NERC said these areas may be able to meet demand under normal weather conditions, but may struggle with “extreme heat and sub-zero” temperatures.
The risk of shortages is increasing as the incidence of extreme weather events increases across the United States, NERC said.
Generators are often not designed or prepared for extreme temperatures and can be forced out, while severe weather can damage infrastructure and impact energy production and transportation. there is.
Demand for air conditioning and heating will also increase.
NERC says energy providers must add more reliable resources to address risks and expand their networks to power new locations and factories.
Andy Kubengros, managing director of the data center market at JLL, a commercial real estate firm serving the technology industry, told the Post: We need to audit our systems. We had never dealt with this kind of influx before. ”
“Everyone is chasing power now. They're willing to look for it anywhere.”
