Energy companies told to recharge for AI datacenter surge

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Demand for electricity to outstrip supply soon, warns Bain

US energy companies must adapt to the AI-driven datacenter boom with power use forecast to outstrip supply within the next few years.

Many of the biggest datacenter investors are based in the US and it is one of the locations expected to substantially expand capacity over the rest of this decade. Awarns that growing energy use could outstrip supply in just a couple of years, and utilities should look to boost their annual energy generation by up to 26 percent by 2028 to fulfil demand.

It isn't the US alone that is juggling these challenges; a report last year found that European datacenter operators areAccording to Bain's estimates, global energy consumption by data facilities could grow at a compound annual rate of between 10 to 24 percent from 2023 to 2027, potentially topping 1 million gigawatt hours.

The report recognizes that the risk and the cost of the massive investment needed to supply datacenter projects may outweigh the benefits for some utilities, but warns that missing out on potential growth is also a danger. Speed to market is vital for operators, it says, and they may move to other locations or invest in alternatives, including generating their own power.

 

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