Electrification is reshaping our world, from the surge in electric vehicles on our roads to the growing demand from data centers powering our digital lives. As industries, homes and infrastructure increasingly rely on electricity, the need for a resilient and reliable grid has never been greater. Meeting this challenge requires innovative solutions, strategic investments and a commitment to maintaining the high standards of reliability that modern life demands.
Reports and Regulations
Every email you send, every social media post you share and every app you use relies on a vast network of data centers scattered around the globe. These data centers, humming with thousands of servers, require significant amounts of electricity 24 hours a day. With society’s increasing dependence on the internet and the projected rapid growth of artificial intelligence (AI), the demand for electricity is expected to surge in the next five years.
Studies
According to a 2024 study completed by the Electric Power Research Institute (EPRI), U.S. data centers could double their electricity usage by 2030 – at which point they would consume 9% of America’s electricity generation. “AI queries require approximately ten times the electricity of traditional internet searches and the generation of original music, photos, and videos requires much more,” EPRI said in its report. “With 5.3 billion internet users, rapid adoption of these new tools could increase power demands substantially.”
According to a 2024 report from Grid Strategies, U.S. electricity demand is forecast to increase 15.8% by 2029. “It is worrisome that strategic industries, such as the development of an American advanced manufacturing sector or AI leadership, may face headwinds from the limited ability of the nation’s electricity systems to respond,” the report said. “There are real risks to America’s economic, technological, and geopolitical leadership if the grid can’t keep up with demand.”
A dependable and economical supply of electricity is foundational for leveraging cutting-edge technologies and sustaining business growth. A consistent power supply is required to run the sophisticated machinery and computer systems that are driving efficiency and innovation. Automation relies on stable electricity to operate machinery and streamline processes, while machine learning algorithms require uninterrupted power for data processing and training. Inconsistent or costly electricity can disrupt these advanced technologies, leading to increased operational risks and stifling potential advancements.
According to the Energy Information Administration, consumption of electricity in the U.S. commercial sector has recovered from pandemic levels, with annual U.S. sales of electricity to commercial customers in 2023 totaling 14 billion kilowatt-hours(kWh), or 1%, more than in 2019. The growth in commercial demand for electricity is driven by the rapid development of large-scale data centers. Nationally, it is expected that U.S. sales of electricity to the commercial sector will grow by 3% in 2024 and by 1% in 2025.
Electric vehicle adoption rates continue to grow in the U.S. and across the world. Nearly one in five vehicles sold globally in 2023 was electric, while 10% of new vehicles in the U.S. were electric. According to a study completed by the International Energy Agency, new U.S. electric car registrations totaled 1.4 million in 2023, increasing by more than 40% compared to 2022.
Simply put, the future is going to require a lot of electricity. Our modern lives require instant access to data and information via the internet.
Electric vehicle adoption rates continue to grow in the U.S. and across the world. Nearly one in five vehicles sold globally in 2023 was electric, while 10% of new vehicles in the U.S. were electric. According to a study completed by the International Energy Agency, new U.S. electric car registrations totaled 1.4 million in 2023, increasing by more than 40% compared to 2022.
Reports and Regulations
