AI Demand Threatens Power

AI Demand Threatens Power

4 July 2025

Hitachi Energy is cautioning that the increasing power demands of AI data centres could destabilise the global energy supply. The head of the transformer manufacturing giant is advocating for new regulations that would alert utility companies to the erratic fluctuations in data centre energy consumption.

The surge in AI-driven computing requires significantly more power than traditional data centres, leading to rapid and unpredictable spikes in demand. These fluctuations can strain power grids, potentially causing instability and equipment damage. The increasing demand necessitates substantial investments in grid infrastructure and advanced solutions for energy storage and distribution.

To address these challenges, Hitachi Energy is investing heavily in expanding its production of critical transformer components and strengthening supply chains. These investments aim to enhance manufacturing capabilities and alleviate transformer shortages, ensuring a more resilient and sustainable energy future.

Source:ft.com

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Published on 4 July 2025
aiartificialintelligenceintelligenceenergypowergridsdatacentershitachi
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AI Demand Threatens Power