Is Ai 'insatiable' energy demand an apocalyptic threat?

The high-profile pieces lean heavily on recent projections from Goldman Sachs and the International Energy Agency (IEA) to cast AI's "insatiable" demand for energy as an almost apocalyptic threat to our power infrastructure.

How will AI affect the energy industry?

This strain on electricity distribution creates dangerous swings in power demand that threaten energy infrastructure. As companies begin to utilize AI for more than just large language models, we can expect many individual firms’ electricity usage to increase.

Does AI use a lot of energy?

While generative AI models and tools can and will use a significant amount of energy, we shouldn't conflate AI energy usage with the larger and largely pre-existing energy usage of "data centers" as a whole.

Can generative AI help the power industry?

There is no energy transition without electrification, so it is imperative the players in the power system use the technology available to them to keep the electrons flowing. Once the hype around generative AI eases the power industry must stay focused on how it can help understand the complexity of the grid.

How can Ai be able to meet high energy demand?

To enjoy ample, affordable, and consistent energy, the AI industry and utilities that serve it need to look toward abundant natural gas and the potential of nuclear energy to meet high energy demand, in addition to constructing solar and wind farms. AI data centers abroad may look toward electricity powered by U.S. liquified natural gas.

Is Ai overestimated?

When it comes to keeping our lights on or hospitals or defense systems running, hallucinations cannot be accepted. That is why in our New Power Systems report we say that AI is overestimated in the short term and underestimated in the long term – a phenomenon called Amara’s law.