The accelerating demand for energy to power artificial intelligence is creating a new global race, where access to abundant and reliable power is becoming the key differentiator. In this landscape, the United States risks falling behind, as highlighted in discussions around The State of AI: Energy is king, and the US is falling behind. Massive data centers are planned, but the infrastructure and power supply needed to support them are not developing quickly enough.
Table of contents
Official guidance: IEEE — official guidance for The State of AI: Energy is king, and the US is falling behind
Key Developments
For almost a decade before 2020, data centers managed increasing electricity demand through efficiency improvements. However, the current surge in AI model usage is outstripping these gains, leading to rising electricity consumption. The lack of new power capacity is causing strain, resulting in increased electricity bills for those living near data centers. The State of AI: Energy is king, and the US is falling behind, if it cannot address this growing energy demand.
China, in contrast, installed 429 GW of new power generation capacity in 2024, significantly outpacing the US. While China relies on coal, it’s also investing heavily in solar, wind, nuclear, and gas. The US, however, is attempting to revive its coal industry, which is not only polluting but also expensive and less reliable, operating at a lower capacity factor than in previous years.
Renewable Energy and the US Position in The State of AI
The US risks becoming a consumer rather than an innovator in both energy and AI technologies if it does not address its energy constraints. China’s renewable energy exports already exceed US oil and gas exports. Building and permitting new renewable power plants would be beneficial, but wind and solar face political opposition. Natural gas is another option, but there are concerns about equipment delays. The State of AI: Energy is king, and the US is falling behind, because of these challenges in increasing renewable energy sources.
One potential solution involves data centers agreeing to curtail their electricity consumption during periods of grid stress. A Duke University study found that a reduction of just 0.25% in data center consumption could provide power for approximately 76 GW of new demand, effectively increasing the grid’s capacity by 5% without new infrastructure. However, flexibility alone is insufficient to meet the overall surge in AI electricity demand.
The Uncertain Energy Demands of Artificial Intelligence
The exact amount of power AI will consume remains uncertain. Forecasts for data center power needs in the next five years vary widely. This uncertainty is compounded by a lack of public data on AI systems’ energy needs and questions about future efficiency improvements. While Nvidia has significantly improved the energy efficiency of its chips, historical predictions about technology’s energy needs have sometimes been inaccurate. The State of AI: Energy is king, and the US is falling behind, if it cannot accurately predict future energy demands.
Countries like Ireland are already experiencing pressure due to data centers’ high power consumption, leading to restrictions on new connections. Some regulators are considering rules that would require tech companies to provide their own power. The State of AI: Energy is king, and the US is falling behind, unless tech companies take responsibility for their energy consumption.
Strategies for Meeting AI’s Energy Needs
Data centers should be incentivized to reduce their power usage during grid stress. Agreements that provide cheaper electricity to data centers that allow utilities to access their backup generators should be more common. These measures reduce the need for new power plants, regardless of AI’s ultimate electricity usage.
The State of AI: Energy is king, and the US is falling behind, but can still take steps to improve its position. By promoting flexible energy consumption, encouraging renewable energy development, and addressing infrastructure challenges, the US can strive to maintain its leadership in AI while ensuring a stable and affordable energy supply.
In conclusion, The State of AI: Energy is king, and the US is falling behind, necessitates a proactive and multifaceted approach to address the growing energy demands of artificial intelligence. The US needs to learn from other countries and prioritize renewable energy, flexible energy consumption, and infrastructure development to remain competitive in both energy and AI technologies.
Technology Disclaimer: Product specifications and features may change. Always verify current information with official sources before making purchase decisions.
Explore more: related articles.