A new report from Bain & Company warns that America’s growing appetite for energy, fueled by the rise of artificial intelligence and other technologies, could outpace the nation’s ability to generate electricity by the end of the decade. The consultancy predicts that utilities may need to boost power generation by as much as 26% by 2028 to keep up with surging demand.
This looming energy crunch is largely attributed to the power-hungry data centers required to sustain AI technologies, which account for nearly half of the projected increase in electricity demand.
Residential electricity use, including the growing popularity of electric vehicles, is also a significant contributor.
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The report highlights the financial strain this will place on utility companies and consumers alike. Bain estimates that utilities may need to increase customer bills by 1% annually through 2032 to fund the necessary infrastructure upgrades.
This warning from Bain echoes concerns raised by grid operators and energy experts who point to the increasing pressure on America’s aging electrical grid, exacerbated by the closure of reliable fossil fuel power plants.
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