The U.S. electricity demand is forecast to grow by nearly 2% annually through 2030, with data centers responsible for about half of the increase. However, the energy grid is struggling to keep pace, with at least 390 planned or under-construction projects delayed.
An official assessment published by the North American Electric Reliability Corporation (NERC) found that 60% of grid regions in the United States (nine out of 15) are at ‘elevated’ or ‘high’ risk of falling short of energy demand as soon as 2030.
This poses a major and urgent problem for the nation’s energy security, especially during extreme weather events when people need heating or cooling.
Moreover, NERC highlighted that the skyrocketing energy demand is driven by the artificial intelligence boom, which is sending energy consumption rates soaring.
Addressing these challenges requires reforms that will help accelerate the expansion of the grid.
