HARRISBURG / LONDON (IT BOLTWISE) – Energy demand forecasts are alarming: utilities expect electricity needs to double or even triple in the coming years to power new, massive data centers that support the rapidly growing AI economy. But the challenges of building new power plants in such a short time raise questions about whether these forecasts are actually realistic.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
Rising demand for energy, driven by the boom in new data centers supporting the AI economy, is causing concern among lawmakers and regulators. Utilities are forecasting dramatic increases in electricity demand, but the viability of these forecasts is increasingly being questioned. Critics fear the predictions could be based on projects that may never come to fruition, leading to billions of dollars in unnecessary investments.
A key problem is the uncertainty as to whether the planned data centers will actually be built. There are no uniform standards to check the feasibility of such large-scale projects, which can lead to speculation and potential bad investments. Experts like Joe Bowring of Monitoring Analytics point out that there is a lack of careful scrutiny of forecasts to distinguish between realistic and speculative projects.
The uncertainty is compounded by the practice of data center developers submitting requests for network connections in different coverage areas without disclosing whether they have submitted requests elsewhere. This can result in a single project artificially inflating the energy forecasts of multiple utilities. The Federal Energy Regulatory Commission has therefore called on grid operators to improve their methods for assessing the feasibility of projects.
In Texas, a hotspot for large data center projects, lawmakers have taken steps to increase transparency. New laws require developers to disclose whether they have made power requests in other parts of the state and set standards for financial commitment to a site. These measures are intended to help distinguish real from speculative projects and ensure grid stability.
The discussion about the energy requirements of data centers is an example of the challenges that come with rapid technological development. As demand for AI-powered services grows, utilities and regulators must ensure that infrastructure is expanded sustainably and efficiently to meet the needs of the future without placing unnecessary burdens on consumers.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “Data centers drive up energy demand: doubts about forecasts”.