Intelligence Update
Grid growth and decarbonization: an unhappy couple
The advent of AI training and inference applications, combined with the continued expansion of the digital world and electrification of the economy, raises two questions about electricity generation capacity: where will the new energy be sourced from, and how can it be decarbonized?
Groups, such as the International Energy Agency and the Electric Power Research Institute, project that data center energy demand will rise at an annual rate of 5% or more in many markets over the next decade. When combined with mandated decarbonization and electrification initiatives, electricity generation capacity will need to expand between two and three times by 2050 to meet this demand.
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