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The grid is the ‘most complicated machine’ ever built, and AI is stressing it out

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News release from The Deep View

 At the beginning of the year, the International Energy Agency (IEA) found that, in 2022, data centers consumed around 460 terawatt-hours (TWh) of energy, or around 3% of global electricity use. The IEA further predicted that this number will likely more than double to around 1,000 TWh by 2026 — roughly the equivalent of Japan — due, at least in part, to the energy demands of artificial intelligence.
Many of the massive investments being made around the world in AI have to do with building more data centers, even as existing data centers are consuming more energy than ever before. What this means for carbon emissions is complicated (since it depends on the cleanliness of the grid at each data center location), but today, we’re talking about the grid.
  • There have been plenty of reports in recent months regarding the ways in which this data center expansion is stressing our grid.
What’s going on here is that, driven by spiking data center demand, electricity demand is currently experiencing a prolonged surge. Mariko McDonagh Meier, the chief revenue officer for energy storage developer Convergent, told me that this is significant, as energy demand had been relatively flat for the past 20+ years. 
  • This was due to increasingly energy-efficient technology, which compensated for increases in electrical usage.
  • “That’s where things are really shifting as data centers move toward AI, they just need so much more computing power it’s going to look very different,” she said.
The details: Grid operators, according to Meier, have the basic charge of ensuring the grid is reliable. This means managing electricity supply and demand in real-time. If a massive machine — or data center — comes online and its accompanying demand hasn’t been properly accounted for, it could “break a lot of stuff.”
The reality, according to Meier, is that “the grid is the most complicated machine that’s ever been built, truly, because it is an interconnected machine.” The reason behind this interconnection has to do with built-in fail-safes; local problems can be solved by drawing on power from other places. This enhances the reliability of each interconnected grid (the U.S. and Canadian power grids, for example, are connected at 37 different points for this very reason).
The result of this interconnection — coupled with a lack of storage capabilities built into the grid — is that the grid has to be constantly balanced. This data center-driven increase then poses a significant challenge to grid operators, resulting additionally in delays for new data centers to come online.
In order to meet this surging demand, and in order to keep the grid reliable, the retirement dates of environmentally damaging coal plants are being pushed back in the U.S.
  • “You can’t replace the fossil plants fast enough to meet the demand,” Joe Craft, CEO of Alliance Resource Partners, one of the largest U.S. coal producers, told the FT. “In order to be a first mover on AI, we’re going to need to embrace maintaining what we have.”
  • Globally, 69.5 gigawatts of new coal capacity came online in 2023, compared to just 21.1 GW that were retired, according to Global Energy Monitor (this is largely due to China).
A big solution to this rather complex mess, according to Meier, involves solar plus storage tech (something that Convergent offers). Depending on the size of the solar array in question, the combination can be enough to power a data center, perhaps with a minimal connection to the grid — the result is cheaper, sustainable energy production that doesn’t impact grid reliability.

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Economy

Trump declares national energy emergency

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From The Center Square

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President Donald Trump signed an executive order Monday night declaring a national energy emergency.

Trump announced the order earlier in the day during his Inauguration Speech.

“We will drill baby drill,” Trump said. “We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world. We will be a rich nation again and it is that liquid gold under our feet that will help to do it.”

The order states that high energy prices are an “active threat to the American people.”

“The policies of the previous administration have driven our Nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action,” the order said. “In light of these findings, I hereby declare a national emergency.”

To solve high prices and remedy the “numerous problems” with America’s energy infrastructure, the order stated that the delivery of energy infrastructure must be “expedited” and the nation’s energy supply facilitated “to the fullest extent possible.”

This was one of many executive orders the president signed on his first day in office.

In another order signed Monday night, Trump declared it was time to unleash American energy.

“In recent years, burdensome and ideologically motivated regulations have impeded the development of these resources, limited the generation of reliable and affordable electricity, reduced job creation, and inflicted high energy costs upon our citizens,” the order said. “It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources.”

All this will be done through encouraging energy exploration, the elimination the electric vehicle mandates, and safeguarding “the American people’s freedom to choose from a variety of goods and appliances.”

The order promises these measures will “restore American prosperity,” “establish our position as the leading producer,” and “protect the United States’s economic and national security and military preparedness.”

In an earlier signing of executive orders in front of a crowd of supporters at the Capital One Arena, Trump signed an executive order withdrawing the United States from the Paris Climate Accords.

Elyse Apel is an apprentice reporter with The Center Square, covering Georgia and North Carolina. She is a 2024 graduate of Hillsdale College.

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Daily Caller

Trump Takes Firm Stand, Exits Paris Agreement Again

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From the Daily Caller News Foundation

By Mariane Angela

President Donald Trump issued an executive order Monday to remove the United States from the Paris Agreement.

The United States joins Iran, Libya, and Yemen as countries not part of the Paris Agreement, which seeks to limit global warming, the New York Times reported. Trump had previously pulled out of the agreement during his first term, only to see his successor, former president Joe Biden, re-enter it in 2021 after taking office.

This decision aims to increase fossil fuel production and reduce investment in clean energy technologies like electric vehicles and wind turbines, the outlet stated. Additionally, Trump notified the United Nations, which manages the Paris Agreement, of the U.S.’s withdrawal with a signed letter, setting the official exit to occur one year after its submission.

Trump has said in the past that the U.S. involvement in the Paris agreement harms America’s economic competitiveness and would not make a significant impact on the climate. He also said previously that the agreement was poorly negotiated and did not put American workers first.

The Biden administration implemented new emissions goals as part of its efforts to solidify its climate strategy. The Trump administration plans to deregulate the energy sector and roll back funding from Biden’s key climate initiatives. Since Nov. 5, members of Biden administration have distributed $1.6 billion in “environmental justice” grants, secured significant loans for green energy firms, empowered  California regulators to influence the national auto market, and published a detailed analysis on the effects of liquefied natural gas exports, potentially hindering Trump’s efforts to expand them.

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