After nearly two decades of inactivity, demand for electricity in the United States is soaring. Recent Report Grid strategiesthe energy consultancy, estimates that annual electricity demand will rise by 0.9%, while power added to the grid will increase by just 0.5%.
What is the reason for this crunching? First, there is the boom in the domestic industry and the growing need for artificial intelligence-based computing power, which is projected to lead to an increase in the number of data centers across the country.
But there are several lesser-known factors that could be pushing the American grid over the edge. The boom in artificial intelligence, the continued popularity of cryptocurrency mining and the legalization of marijuana are all increasing the potential load on the network, while extreme weather conditions make it more vulnerable.
Data centers required for cloud computing today account for about 2.5% of the country’s energy consumption. Their energy consumption is expected to increase by the end of the decade. tripleAccording to Boston Consulting Group, this is driven by the growth of artificial intelligence applications, as well as cryptocurrency mining. The International Energy Agency conducted similar option, predicting that data center electricity demand will double between 2023 and 2026. In the US, data center growth accounts for one-third of added demand over this time period. According to Grid Strategies, PJM, an interconnection company covering parts of 13 states from Ohio to Virginia, has “seen unprecedented growth in data center load.” Virginia has the largest concentration of data centers in the United States, and Loudoun County has been nicknamed “Data Center Alley.” The state’s utility, Dominion Energy, delayed or turned away the centers, saying it couldn’t provide power. demandaccording to industry publication Data Center Dynamics.
Artificial intelligence and cryptography are energy-intensive activities. Training an AI model on terabytes of data, as well as feeding it hints, are data-intensive processes that consume far more energy than, say, the equivalent of a Google search. One study in Joule predicted that by 2027, artificial intelligence applications worldwide could consume as much energy as the entire country of the Netherlands.
Cryptocurrency is a “power pig” for the same reason. Miners compete to be the first to solve complex problems and are rewarded with cryptocurrency; Since the chances of solving it first are infinitesimal, miners have an advantage by using more and more fast computers, which leads to more power consumption.
“It’s really just a matter of luck,” said Samantha Robertson, a member of the strategy team at bitcoin company Bitdeer. Texas Tribune. “To increase your chances, it makes sense to run these computers on a large scale.”
Cryptocurrency mining accounts for about 2.3% of America’s energy consumption, according to National Bank. Energy Information Administration. In Texas, a popular location for cryptocurrency mining operations, miners have requested the equivalent of 41 new nuclear reactors, according to data The keeper. According to Grid Strategies, Texas’ grid has “continued rapid growth in load” since last summer.
There is another growing and energy-intensive industry: marijuana. The rapid decriminalization and legalization of the drug, not to mention young Americans’ preference for bud over booze, has led to enormous growth in the marijuana market. Half the states in the US now have legal marijuana in some form, be it recreational or medical, and all that weed has to be grown somewhere.
And growing a plant turns out to be an energy-consuming activity. Cannabis plants require the same intense lighting as in a hospital. operating room, fans for air circulation and frequent temperature changes. More than a decade ago, the National Conference of State Legislatures estimated that the marijuana industry consumes about 1% of the nation’s electricity. Today, that number is certainly higher given its explosive popularity. In Massachusetts, marijuana now accounts for 10% of the state’s indoor energy use; Colorado, one of the first states to legalize pot in 2014, now emits as much carbon dioxide into the atmosphere as mining does, according to a letter from two members of Congress. Department of Energywho expressed concern about the industry’s “rapidly growing demands on our nation’s energy systems.”
All this means that after decades of stagnant demand for electricity in America (thanks to economic shifts and more efficient power generation), it is headed for a new boom. And national regulators may not be ready. The nonprofit North American Energy Reliability Council recently said energy demand is “growing faster than at any time in the last five years or more.” rated This summer, 13 of the continent’s 20 power grids are at risk of power shortages.