Exchanges AI Exchanges: Where Will the Power Come From?
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Jul 16, 2025 
Rebecca Kruger, a partner at Goldman Sachs’ Natural Resources Group, dives into the energy challenges posed by the booming AI industry. She discusses how AI is reshaping energy consumption patterns and the urgent need for innovative solutions amid aging infrastructure. The conversation also highlights the vital collaboration between tech giants and power companies to meet rising energy demands. Lastly, they explore the constraints on energy infrastructure development and the transformative potential of AI to create a more efficient energy future.
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AI's Physical Power Demand
- AI requires immense physical infrastructure with vast data centers and specialized gear consuming unprecedented power.
- This physical reality makes power supply a major bottleneck for AI development and deployment.
Decarbonization Impact on Grid Reliability
- Despite a flat 20-year U.S. power demand, AI causes unprecedented new demand challenges.
- Decarbonization policies led to more intermittent power sources, reducing grid reliability before AI's surge.
Partnership Examples and Timing Mismatch
- Hyperscalers partner with utilities to restore nuclear plants and increase capacity at existing sites.
- Yet, power plant construction timelines lag far behind data center builds, creating supply bottlenecks.