Surging demand from tech sector could overwhelm generation capacity, report says
North America’s electricity grid faces “critical reliability challenges” as power generation fails to keep pace with surging demand from artificial intelligence, the industry watchdog has warned. Soaring electricity consumption in the next decade, coupled with the closure of coal-fired plants, will place huge strain on US and Canadian grids, the North American Electric Reliability Corporation has found.
Electricity demand was growing quicker than at any point in the past two decades, NERC found, amid rapid construction of data centres to power AI and crypto mining, and as consumers buy electric vehicles and heat pumps. Peak summer demand would rise by 132 gigawatts, or 15 per cent, over the coming decade — a sharp increase in last year’s forecast for a rise of 80GW. Peak winter demand will rise by 149GW, or 18 per cent, versus 92GW before, NERC said.
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