POLITICO Tech
How Trump's AI ambitions are at odds with a wonky energy agency
Jan 31, 2025
Catherine Morehouse, an energy reporter for POLITICO and author of Morning Energy, joins the discussion about Trump's ambitious plans for AI and energy regulation. They explore how Trump's desire for data centers to connect directly to coal power plants could clash with the Federal Energy Regulatory Commission (FERC). The conversation reveals the complexities of balancing industrial energy needs with consumer protection. Additionally, they highlight an innovative AI model from DeepSeek that could change the energy landscape amidst growing power demands.
17:30
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Quick takeaways
- Trump's proposal to connect data centers directly to power plants may face regulatory challenges from the Federal Energy Regulatory Commission.
- The emergence of more energy-efficient AI models could significantly alter current energy consumption assumptions, impacting both utilities and consumer costs.
Deep dives
President Trump's Direct Power Proposal
President Trump's proposal aims to connect data centers directly to power plants instead of utilizing the traditional power grid. This connection could provide data centers with a more reliable power source, minimizing concerns about power outages. Additionally, power plant providers could benefit from charging a premium for this direct access, creating a win-win scenario for both sectors. However, this controversial approach has sparked debate regarding its implications on the wider power supply and customer rates.
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