Pages

19 April 2025

AI and the Future of the U.S. Electric Grid


Despite its age, the U.S. electric grid remains one of the great workhorses of modern life. Whether it can maintain that performance over the next few years may determine how well the U.S. competes in an AI-driven world.

AI is a big part of the challenge. Its vast data centers suck up energy like small cities. But a recent RAND study suggests AI could be a big part of the solution, too. There are risks here—some obvious, some not—and grid operators need to move with caution. But AI could usher in an energy future that is more resilient, more efficient, and more affordable for customers.

“The important thing is to do it without rocking the boat,” said Ismael Arciniegas Rueda, a former energy executive, now a senior economist at RAND. “The grid can fail, definitely, and I don't think people understand the consequences if that does happen. It's not just the lights going out. Our whole life depends on whether or not energy is available 100 percent of the time.”

Companies working with AI have warned that they are already struggling to find the power they need. Keeping them on U.S. soil has become a national imperative, especially in light of the deepening competition with China. That means upgrading and modernizing the grid, much of which was built in the 1960s and ‘70s.

No comments:

Post a Comment