AI Driving a Global Race for Power

Worldwide energy demand will likely explode in coming years.

Industrial requirements, the ever-present digital life, and economic growth in emerging markets, particularly India and China, have been driving rising demand for many years. But now, as a tidal wave of AI data centers come online, the outlook for energy demand faces a steep ascent.

Meeting that demand will require expansion of capacity across all energy sources.

U.S. electricity demand is expected to grow 25% by 2030 and 78% by 2050 as compared to 2023 demand levels, according to a report by consulting firm ICF. The Massachusetts Institute of Technology calculated that by 2028, electricity consumption by AI data centers could be equivalent to 22% of all U.S. household consumption.

Primary sources of energy, including coal and natural-gas power plants, nuclear, and renewables such as solar, wind, hydro and geothermal, each solve a piece of the puzzle.

Nuclear, long maligned due to fear of radioactive contamination risks, is seeing a renaissance with facilities restarting in Japan, and new reactors being commissioned in China, India and Korea. Now fusion power, once viewed as a technology that is 35 years out and always will be, appears to be at a turning point with the real possibility that grid-scale power could be delivered in the early 2030s.

Addressing growing power needs will be a critical challenge in the coming years. Recent transmission failures in China, Portugal and Spain highlighted the need for investment to ensure energy security. Fortunately, innovation is addressing these challenges with emerging technologies across advanced materials for energy storage, fusion power, isotopes and materials required for nuclear power and many other areas.

The countries and companies that are preparing for it now will be the economic winners. Those that don’t will be left behind.