07/12/2024 | Press release | Archived content
Washington D.C. - In a letter to the Federal Energy Regulatory Commission (FERC), House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) are pressing for more information on FERC's ability to address the growth in electricity demand, particularly from the rapid growth of AI data centers.
KEY LETTER EXCERPT:
"After years of minimal growth, electricity demand in the United States is projected to grow nationally at a significant pace through the end of the decade. It is anticipated that much of this demand growth will come from a surge in the number of data centers and the growing uses of artificial intelligence (AI) by data centers, onshoring of industry and manufacturing, and increased electrification. Estimates show annual growth of 5 to 6 percent through the end of the decade, a tenfold increase in the growth rate from current levels. By the end of the decade, data centers, which are driving increases in electricity demand, could consume as much as 9.1 percent of all electricity in the United States.
"Unlike many sources of demand that consume electricity at a lower energy density, data centers consume large quantities of power at a near constant level throughout the year. This surge in demand for reliable and dispatchable baseload generation comes at a time when the NERC has repeatedly raised concerns over the adequacy and reliability of the grid. These risks are due to a confluence of factors, including state and federal policies that have forced premature retirements of reliable generation without adequate replacement generation resources and electric infrastructure. FERC's recent summer assessment lists data center demand growth as a driver for increased demand while acknowledging that supply shortages are possible this summer."
BACKGROUND:
The Chair requested the FERC Commissioners provide the following information by July 30, 2024:
CLICK HERE to read the full letter.