Author: Power Peak Digest Team Pub Date: January 28, 2025
The US’s largest electricity grid, managed by PJM Interconnection, anticipates a 58 GW surge in peak summer demand by 2035, reaching 210 GW due to the AI boom, according to Bloomberg. Data centres critical for AI operations drive rapid power consumption, potentially straining the current grid infrastructure.
At the World Economic Forum in Davos in January 2025, US President Donald Trump stressed the need for power plants to accompany data centres to reduce grid stress. He issued an executive order suspending funding for the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, halting clean energy and manufacturing projects under what he termed Terminating the Green New Deal.
According to the White House, the IRA pause affects programmes discouraging fossil fuels or promoting electric vehicles.
In response to rising energy demand, NextEra Energy has partnered with GE Vernova to develop natural gas-fired power generation projects for AI data centres and other large power consumers. The projects, expected to start by 2029, aim to integrate natural gas with renewable energy sources like solar and battery storage.