Input Stories

U.S. electricity demand is set to spike in the next few decades, seeing a 25% rise between 2023 and 2030, according to a new report from consulting firm ICF International (E&E News, subscription).

The data: The report also projects a “shocking” increase of 78% by 2050, “in large part thanks to a boom in data centers and manufacturing centers.”

• “That’s an even bigger increase than ICF had forecast just two years ago and more than reports from the federal government just months ago—an indication, the authors say, of just how quickly demand is changing.”

Construction needed: “Meeting the surge in demand growth will require the U.S. to add about 80 gigawatts of generation a year between 2025 and 2045, up from the average 40 GW installed per year in the last five years.”

The barriers: Though more generation will be needed to meet this demand, many power plants face a long wait for new equipment, and tariffs will also prevent the buildout of solar fields.

• Meanwhile, the arduous regulatory process delays construction of new power plants and grid infrastructure, which is sorely needed.

The tax credit angle: “A separate analysis released Tuesday by think tank RMI found that repealing [clean energy] tax credits would jeopardize the country’s ability to meet data center demand, especially because renewable energy and storage can be built in as little as a year.”

The NAM in action: The NAM recently informed policymakers of manufacturers’ needs as artificial intelligence and other advanced technologies continue to increase electricity demand.

• In response to a request for information from the House’s AI and Energy Working Group, led by Rep. Julie Fedorchak (R-ND), the NAM recommended that lawmakers reform the permitting process to clear the way for more construction, including of more transmission and distribution lines.
• “A reliable, resilient modern grid is required to enable the historic growth in data centers—which in turn can contribute to manufacturing growth,” the NAM said.

The last word: “In order to meet these unprecedented projections, to ensure manufacturers can continue to invest and grow and the U.S. wins the AI arms race, we need to bring online all the generation we can, not limit our options,” said NAM Vice President of Domestic Policy Chris Phalen. 

• “A true all-of-the-above energy strategy that harnesses our abundant natural resources—from solar, wind and geothermal, to nuclear, to American natural gas—is what manufacturers need to cement American manufacturing and energy dominance.”