EXAMINING THE IMPACT OF AI ON THE ENERGY GRID By Dr. Rebecca Bosco
In 2024, the discourse surrounding data centers and their operators underwent a significant transformation, propelled by the burgeoning influence of artificial intelligence (AI). This shift was primarily driven by an exponential surge in energy demand from AI-enhanced data centers. Currently, AI applications are estimated to consume between 10% and 20% of the electricity utilized by data centers, and as adoption across industries grows, this percentage will increase. Concurrently, international power grid operators are grappling with challenges worsened by the unpredictable nature of renewable energy sources, the increase in natural disasters attributed to climate change, and the rise of integrated technological systems. These elements place immense pressure
on the reliability and capacity of electrical grids worldwide. A delicate balance must be maintained between power consumption and power generation to ensure stability in the energy market. According to projections from The Electric Power Research Institute (EPRI), by the year 2030, data centers could account for as much as 9% of all electricity generated in the United States—a figure that would effectively double the current consumption (Figure 1). This escalating trend highlights the pressing necessity for a fundamental rethink in energy management, wherein stakeholders address the rising demands of AI and prepare for a looming perfect storm of challenges to achieving energy equilibrium.
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ICT TODAY
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