AI's Thirst for Power

The rapid expansion of AI is creating an energy crisis, with power supply becoming a critical bottleneck. AI's increasing energy demands stem from the massive computational resources required to train and operate large language models. Data centres, essential for AI development, consume vast amounts of electricity, potentially straining power grids.

The US faces challenges in meeting these escalating energy needs, particularly compared to countries like China, which are rapidly building energy infrastructure for AI. To maintain its leadership in AI, the US must invest significantly in energy capacity and modernise its infrastructure. This includes streamlining the permitting process for new energy projects and supporting the development of diverse energy technologies.

Addressing the energy demands of AI also raises concerns about energy equity. As data centres consume more power, there's a risk of increased energy costs for households, especially those already struggling with energy affordability. Effective regulation is needed to ensure that large energy users cover their costs and protect vulnerable communities from rate hikes, while also promoting a transition to sustainable energy sources.