Electricity Demand is on the Rise;
What Your Business Needs to Know
Unprecedented electricity demand, supply-chain constraints, regulation, economic forces and Artificial Intelligence (AI) are just some of the factors reshaping how energy will be generated and consumed in the years ahead. Many regions in the United States are facing growing risks of running short of power.
Data centers, for instance, consumed 200 terawatt hours (TWh) alone in 2022, according to the International Energy Agency (IEA), and this number is projected to rise to at least 260TWh (roughly 6% of the nation’s power use) by 2026. While data centers are noted as a key contributor for this demand growth, rapid developments in AI, cloud computing and increasing digitalization and re-domestication of industries and manufacturing in the United States are also main drivers.
As our existing infrastructure struggles to keep up with this demand, competition for power and generation is expected to grow. Ensuring we can meet this demand will be one of this decade's crucial challenges, and critical to maintaining our competitive edge and innovation leadership as a nation.
Diversifying the Energy Mix
As the energy supply gets tighter, expanding and diversifying resources available to the grid will become critical to ensuring reliable electricity. Despite inflation, supply chain disruptions and a rising cost of capital, renewables continue to be an economical forms of generation in most U.S. regions. Behind-the-meter and distributed generation solutions can also act as a bridge for commercial and industrial companies when interconnection delays make grid-sourced power prohibitive. As other emerging solutions have successful pilots and begin to scale, they will play increasingly significant roles in meeting the energy demand. NextEra Energy Resources supports and invests in a variety of new and emerging technologies to meet the growing energy demand.
Leveraging AI and Data
AI has already demonstrated enormous value by identifying opportunities for energy efficiency and optimization. Commercial and industrial businesses and utilities have reported success with leveraging AI to minimize the deployment of backup fossil fleets, and the technology shows immense promise. In utility command centers, AI has made valuable real-time recommendations influenced by complex weather-dependent decisions.
Embracing Growth to Meet Energy Demand
NextEra Energy Resources is prepared to support our customers’ energy needs. A combination of technology and data, collaboration, speed and a growth mindset will be necessary to meet the energy demand. Though what this looks like will vary from region to region and from industry to industry, what unites us all is the essential need for reliable, and affordable power. It is imperative that we work together across sectors to innovate, invest and ensure a reliable energy future for all.
1Amid explosive demand, America is running out of power | The Washington Post
2Global data center electricity use to double by 2026 - IEA report | Data Center Dynamics
3How grid operators can integrate the coming wave of renewable energy | McKinsey
4Electric grids need major upgrades to aid global energy transition: Maguire | World Economic Forum
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