‘The type of processor needed to run AI uses as much power as an average American home’

By Rich Nolan, Real Clear Wire

Hoover Dam (Unsplash)
Hoover Dam

The U.S. Department of Energy recently made a startling admission. U.S. electricity demand is going to double by 2050 and meeting that soaring demand is going to require the equivalent of building 300 Hoover Dams.

As extraordinary as that estimate is, it’s likely far too low. In many regions of the country, utilities and grid operators are warning power demand is growing far faster and higher.

Electrification of the economy with adoption of heat pumps and electric vehicles is part of the demand sea change. So is industrial onshoring of new energy-hungry battery and semiconductor manufacturing plants. But the electricity demand gamechanger is the explosive growth of AI and the enormous data centers needed to support it.

Running an internet search using AI consumes more than ten times as much energy as a traditional Google search. And the type of processor needed to run AI uses as much power as an average American home.

The newest and largest class of data centers are so large their power demand is equal to that of a city the size of Seattle. Dozens of these facilities are now in development.

In Virginia, the nation’s data center capital, the state’s largest utility expects power demand to jump 85% in the next 15 years with power demand from data centers quadrupling.

AEP, a utility with service territory in 11 central states serving 5.6 million customers, has reported that companies representing 15 gigawatts of new power demand – mainly from data centers – are seeking connection by 2030. That’s power demand equivalent to what’s needed for 10 million homes.

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