Delays in expanding solar capacity, batteries, and hybrid energy resources will compound the risk of power outages during peak periodsread more
The rise of artificial intelligence could overwhelm North America’s power grid, threatening blackouts as surging electricity demand outpaces supply, the North American Electric Reliability Corporation (NERC) warned in its 2024 Long-Term Reliability Assessment.
The report highlights “critical reliability challenges” facing the US and Canadian grids in the next decade as AI, crypto mining, and electrification efforts drive unprecedented energy consumption.
At the same time, the retirement of coal-fired plants and delays in deploying renewable energy sources and battery storage exacerbate the strain, the Financial Times reported.
NERC found that electricity demand is increasing at rates not seen in the past two decades, fuelled by rthe apid construction of AI-powered data centres and the growing use of electric vehicles and heat pumps.
Shortfalls looming as soon as 2024
NERC projects some US regions could experience electricity shortages as early as next year, with peak summer demand forecast to rise by 132 gigawatts (15 per cent) over the coming decade — a sharp jump from last year’s projection of an 80GW increase. Winter demand could climb even higher, increasing by 149GW (18 per cent) over the same period.
The watchdog cautioned that delays in expanding solar capacity, batteries, and hybrid energy resources will compound the risk of power outages during peak periods.
National security implications
The growing energy needs of AI have become a national security concern, prompting the Biden administration to host AI and energy industry leaders in September to discuss grid challenges. Expanding grid capacity to support data centres had emerged as a top priority for outgoing officials, Semafor reported.
The International Energy Agency estimates that global electricity demand from data centres alone could exceed 1,000 terawatt hours by 2026 — doubling 2022 levels and matching Germany’s total energy consumption.
Policy shifts under new leadership
The incoming Trump administration has indicated plans to ease fossil fuel regulations, with President-elect Donald Trump pledging to “unleash American energy.” A rollback of restrictions could temporarily boost energy supply, though experts warn it may hinder the longer-term transition to renewable resources.
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Publish date : 2024-12-19 00:59:00
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