The United States economy is in danger of running out of power. After a decade of flat demand, electricity demand is set to grow by 80% by 2034. The grid and the Biden administration are not prepared. The sudden increase in demand is being driven by both the market and by politics. The market is responding appropriately to demand signals. But the Biden administration is asleep on how to respond.
The artificial intelligence, or AI, revolution is a major explanation for why electricity demand is exploding. Accelerated computing powered by semiconductors requires multiples more power than old fashioned data centers. The major U.S. technology companies are investing aggressively in new data centers. AI will dramatically increase the productivity of the U.S. economy and accelerate economic growth, but AI requires a lot of power.
