The rise of AI means surging investment in electricity supply. What will that mean for customers?

The need to meet increased demand while cutting emissions is exposing some fundamental issues in the industry. It’s common knowledge that data centers use a lot of energy, and will use even more in the future as AI applications develop. One thing is not clear, though: who will end up paying for all that extra electricity? US utilities typically used to receive perhaps one or two large customer requests – meaning 20 megawatts or more – each year. Now, they may be receiving one or two of those requests every week. The need for increased electricity supply means increased investment in generation, transmission and distribution. And that investment has to be paid for. So who is going to end up picking up the tab? To find out more, Ed Crooks is joined by regular guest Dr Melissa Lott, a professor at the climate school at Columbia University, and Brian Janous, co-founder and CEO of Cloverleaf Infrastructure, which develops sites that can support large energy-dense users such as AI data centers and chip manufacturing plants. With 12 years previously leading energy strategy for Microsoft, Brian is well placed to answer the big questions on energy demand, investment and customers’ bills.  With Melissa and Ed, he explains how the industry can balance the need to increase supply with the need to achieve decarbonization targets. What role does flexibility play in a highly electrified system, and how can it be leveraged to enhance grid reliability and resilience? Can the ambitious sustainability goals of tech companies like Microsoft and Google be achieved in the face of their rapidly growing demand for power, and what compromises might need to be made? And is nuclear power a source of 24/7 clean energy that could plug the demand gap? The gang debate its efficacy as a long-term solution to the energy needs of Big Tech.  Meeting the energy demand for AI is a complex topic. The Energy Gang will be exploring it further in a special episode recorded live at New York Climate Week, September 22-29. If you can’t make it to New York for what is one of the energy industry’s biggest events of the year, subscribe to the show so you don’t miss the discussion. Ed and regular guest Amy Myers-Jaffe of NYU will be speaking with Caroline Golin, Global Head of Energy Market Development and Innovation at Google, and Kate Gordon, the CEO of CA FWD, a statewide organization dedicated to building a more sustainable, resilient and inclusive economy in the state of California. Subscribe to the show so you don’t miss an episode. Find us on X – we’re @theenergygang To keep up to date with everything we talk about on the show, sign up for our weekly Inside Track newsletter. You’ll get extra analysis from Wood Mackenzie and be notified when a new episode of the podcast is out.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.