The Coming Electricity Wars
As many people had expected, the war over electricity between AI server farms and everyone else has begun and is about to get more violent. A new Semafor headline reads, “Competition for electricity will define the climate beat in 2025.” If residential customers suffer blackouts in some parts of the nation, that will be an understatement.
*The Competition Created By AI
The energy war has two pieces. One is demand-based and is driven by the electricity needs of AI. Some companies, including Amazon and Microsoft, are trying to build their networks with both energy sources and the distribution infrastructure. These will take a year, or in some cases, much longer, to complete. In the meantime, they will need to tap into the old-world American electricity grid. That could cause several serious problems. One is rates, which may rise with demand. The other is who gets electricity and who does not. That is where residential customers are vulnerable.
The other factor is energy sources. Much of America’s electricity still comes from coal. That may accurately increase if green options like solar and wind do not come online. There is a resurgence of interest in nuclear power. But, even if viable, it faces regulatory hurdles. Hydroelectric power still powers much of the western US.
The Fight Has Begun
When all is said and done, the race for who gets electricity and who does not was not something the public knew about. Now, the public is in the middle.
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