Losing a vital spark: AI Power demands threaten to create chaos in U.S. electricity grid

Facebook Tweet LinkedIn

America, experiencing huge demand from AI servers, is running low on electricity and may run out in some regions, despite huge efforts to create renewable energy by the world’s largest tech companies.

However, those sources will take at least two years to develop — and maybe more — and so coal and other fossil fuels remain the primary source of driving electricity production.

According to the North American Electric Reliability Corporation, Americans will pay a steep price for current electricity generation and an ancient grid. Its 2024 Long Term Reliability Assessment says blackouts are inevitable. “We are experiencing a period of profound change,” said John Moura, director of reliability assessment at NERC. “We are seeing demand growth like we haven’t seen in decades … and what we see is the pace only accelerating.”

Rate increases
In addition to the market forces created by AI, there is competition between traditional customers, which includes residents and legacy businesses. The first effect of the near-term future may be rate increases driven by demand.

Already, there have been occasional blackouts in America and Canada. Some, like the huge blackouts in New York City, have been caused by grid weaknesses and failures. Others, mostly in California, have been driven by an effort to prevent downed lines from causing wildfires. Soon, they will be affected by increases in consumption.