The world economy is expanding, and the same is true in America. The government has just received a stark warning from the experts: we are running out of energy, and the situation is getting worse and worse. You wouldn’t expect the reason, and it’s the same one that was inviting optimism to the whole country just a few months ago but has now turned against us. Can you imagine what could be happening? We tell you about the alarm that is spreading throughout the country.
America is running out of energy: The situation is serious and could soon get worse
The US needs to brace for a capacity crunch as consumption for power continues to rise due to growth in data centers and factories for clean technology, renewable energy and other technological advancements. The numbers are staggering. In Georgia, the industrial power demand is expected to rise seventeen-fold within the next decade.
One of Arizona’s largest electricity providers is Arizona Public Service, and the Company will soon reach transmission capacity without upgrading. Even in Northern Virginia, the capacity of as many large nuclear power plants is needed to feed the growing data center facilities. Now, the same situation has manifested in Texas, which has previously suffered from electricity scarcity.
There are several causes for this escalating demand, and one of them is the developing speed of artificial intelligence (AI). This is because the creation of tremendous numbers of large, power-hungry data centers for AI computation is a key factor in the power demands. Do you understand why is this situation raising concerns?
Our greatest businesses are also the greatest enemies: The American economy could be the problem
The need for more computational capabilities among the tech companies is also driving cloud computing with giants like Amazon, Apple, Google, Meta, Microsoft, etc. Another sector that remains a significant source is the crypto-mining industry due to the necessity of electrical power for the solving of transactions and the creation of new cryptocurrencies, such as Bitcoin.
Data centers in the nation used slightly more than 4 percent of the country’s total electricity in 2022, a figure that the International Energy Association predicts will reach 6 percent by 2026 with the nation’s 2700 data centers. Market projections also suggest that data centers’ share of total electrical energy consumption across the U.S. will increase in the years that follow.
Measures are already being taken: Some keys to understanding how serious the problem is
Analysts believe that the US needs to build at least four to eight times more energy generation to cater for the energy demands of data centers, clean tech factories, electric vehicles, and appliances. Some key figures: Data centers accounted for more than 4 percent of the total electricity usage in the United States in 2022, but this percentage is predicted to hit 6 percent in 2026.
- Simply put, the market in Northern Virginia demands a capacity of several hundred thousand kW for the growth of the data center industry.
- Denver electrical demands are set to rise to double in the next decade and rise to over triple by the next generation at the airports to cater for the charging of electric rental cars and ground maintenance trucks.
- Currently, the Biden administration’s climate law, known as the Inflation Reduction Act, will miss out on about 80 percent of these emission reductions by 2030 if the construction of transmission lines is not stepped up.
To satisfy this increased need, the U.S. will have to significantly increase investment in the power grid both domestically and for imports, and build new, cleaner sources of electricity at an astounding pace. It is leading to fights all across the country regarding who will be on the hook for new power supplies. Will we see Elon Musk take action? For the moment, he continues to launch his constellation of satellites; he’s distracted.
