The Future of Electricity Demand in the AI Era

Feb 11, 2025

Rob Gramlich, president of Grid Strategies and expert on electricity issues, dives into the surging electricity demand driven by AI and manufacturing. He discusses how some data centers could consume as much power as mid-sized cities and the urgent need to address grid challenges. Gramlich highlights the historical context of demand growth and the complexities of modern infrastructure. He also explores innovative solutions for managing this demand and the environmental implications for decarbonization efforts, emphasizing the need for rapid renewable energy adoption.

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Intro

00:00 • 2min

Surging Electricity Demand and Infrastructure Challenges

01:39 • 10min

Navigating Modern Challenges in Electricity Demand Growth

11:18 • 2min

Navigating Nuclear and Energy Demand

13:32 • 15min

Navigating Environmental Challenges in the Era of Increased Electricity Demand

28:32 • 6min

Navigating Electricity Transmission Under New Leadership

34:07 • 4min

Grid Strategies’ Rob Gramlich discusses the dramatic increase in electricity demand from data center and manufacturing growth, and the challenges it presents for the grid.

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Electricity demand growth has returned with a vengeance in the United States due to an increase in manufacturing and, most dramatically, the growing use of AI. Across the country, technology giants are racing to build AI data centers, the largest of which will consume as much electricity as an entire mid-sized city.

Yet our electrical grid was not built with such large and immediate new sources of power demand in mind, and it has become clear that solutions are urgently needed if our grid is to successfully accommodate this new load. Adding to the challenge is the fact that forecasts of future demand have been frequently and dramatically revised upwards. The future of electricity demand looks big, but just how big remains uncertain.

Rob Gramlich, president of power sector consultancy Grid Strategies and a frequent expert witness on grid issues before Congress and regulatory agencies, explores the future of electricity demand. Gramlich discusses data from a new Grid Strategies report on the pace of demand growth, and a variety of strategies by which our electric grid might meet that demand. He also considers implications for the cost of electricity and the pace of grid decarbonization.

Rob Gramlich is president of Grid Strategies.

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Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

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