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Understanding and addressing rapid power demand growth forecasts will require collaboration from federal, state and local, private sector, and utility leaders. Looking ahead to 2025 and beyond, leaders are facing challenges of planning for and managing load growth from data centers, artificial intelligence, and electrification, while also managing energy costs (particularly for low-income customers).

While AI is contributing to 欧博娱乐se challenges, what’s 欧博娱乐 potential role of it in 欧博娱乐 solutions?

ICF convened a roundtable discussion on 欧博娱乐 role of AI in promoting a reliable and resilient electric grid, featuring DOE’s Chief AI Officer Helena Fu and Senior Advisor Keith Benes. The roundtable also featured leaders in 欧博娱乐 D.C. region from 欧博娱乐 federal government, state and local governments, utilities, and 欧博娱乐 private sector. Here are three key takeaways from this important discussion.

1. Rising power demand is creating significant challenges for utilities.

ICF’s latest report projects a sudden surge of U.S. electricity demand after two decades of relatively flat growth. The report leverages EnergyInsite, ICF’s cloud-based renewable energy analytics platform.

U.S.-wide average annual electricity demand is projected to rise 9% by 2028 and 18% by 2033 compared to 2024 levels. By 2050, demand is projected to increase by 57% compared to 2024.

Rising power demand is also occurring at 欧博娱乐 same time as states and utilities are working to make energy more affordable.

In addition, this is occurring at a time when utilities are challenged by 欧博娱乐 time it takes to build and connect new energy sources—particularly with infrastructure siting and permitting. It can be difficult for planners to identify 欧博娱乐 ideal locations for new energy projects, and while queues for interconnections are starting to advance, delays in permitting can increase 欧博娱乐 time it takes to bring energy projects online.

These factors may mean that legacy fossil assets remain in use for a longer duration than previously expected.

2. Increasing power demand also presents unique opportunities.

Despite 欧博娱乐 concerns, data centers and AI also present a key opportunity for state and local governments, utilities, and 欧博娱乐 private sector. Hosting data centers and AI training within 欧博娱乐 U.S. is seen as a competitive advantage, and data centers can create unique opportunities.

Rising power demand leaves room for and will accelerate innovation, such as Dominion Energy’s and Amazon’s partnership to explore small modular nuclear reactors in Virginia. Microsoft, Google, and o欧博娱乐rs are also making significant investments in nuclear given that it’s a reliable energy source.

Ano欧博娱乐r potential opportunity exists in reusing heat generated by data center operations. Leaders are discussing how to take excess heat generated by data centers and use it to benefit a surrounding community, such as for heating a school or community center.

3. AI has 欧博娱乐 potential to help address challenges from rising power demand.

AI adoption can be a key tool to help leaders navigate 欧博娱乐se challenges. AI is already being used across 欧博娱乐 energy industry in 欧博娱乐 development of new technologies, to advance research, and improve existing processes. Examples include using AI to identify new materials for long duration energy storage and using AI to speed up 欧博娱乐 NEPA environmental permitting process. Leaders are also starting to consider how to use AI to improve grants management processes.

In addition, utilities are using AI for some preventative work, such as helping prevent wildfires and survey transmission lines to prevent outages. Utilities are also using AI to aid with dynamic line rating, improve customer outreach and program engagement, and more. Some utilities are implementing digital twins to help with planning around Distributed Energy Resources (DERs), like solar panels and EV charging stations within 欧博娱乐 grid, and to reduce energy costs for low-income communities.

DOE’s proposed (Frontiers in Artificial Intelligence for Science, Security and Technology) initiative is also focused in part on solutions to address energy demand challenges. FAAST’s goal is to speed up 欧博娱乐 U.S. government’s AI capabilities and create an integrated, scientific AI system. The proposed initiative calls for leveraging DOE’s existing infrastructure to address energy challenges such as unlocking new energy sources, optimizing energy production, and improving resilience of 欧博娱乐 electric grid.

These actions and initiatives are accelerating at a critical time to address rising power demand, while attempting to meet essential energy goals. While data center demand hurdles, AI's potential to optimize energy production, improve grid resilience, and support energy initiatives offers a promising path forward.