US Energy Chief Warns AI Boom Demands Urgent Power Grid Overhaul

Speaking at a panel on powering America's AI future at a BlackRock summit, Wright said the scale of energy required to support data centres and advanced computing is widely underestimated.

"One of my missions coming to Washington is to make it easier to build big things again, in our country," Wright said, noting that the US had "done precious little of that in the last 20 years or 30 years."

The discussion brought together Wright, NextEra Energy chief executive John Ketchum, and Google president and chief investment officer Ruth Porat. All three argued that artificial intelligence will require vast new electricity capacity, but insisted the US has the resources and technology to meet that demand if regulatory and infrastructure bottlenecks are addressed.

Wright stressed that energy policy should focus on reliability and affordability rather than political priorities.

"The focus needs to be on delivering secure, reliable, affordable electricity," he said. "So we cannot outsource this next energy-intensive industry that's arriving -- artificial intelligence."

Ketchum said energy companies must scale up rapidly to meet demand from AI data centres, which require large, continuous power supplies.

"We have got to unleash energy in this country. We gotta do it quickly," he said, adding that the sector must "get every electron on the grid as fast as possible, and to build at scale."

NextEra, one of the world's largest energy companies, is investing heavily in large "data centre hubs" capable of generating multiple gigawatts of electricity. Ketchum said a mix of gas, nuclear, solar, and storage will be required to supply the grid while keeping costs down.

Porat said the US power system is currently under-invested in generation and infrastructure, even as technology companies accelerate construction of data centres.

"The core issue is the US is underinvested in energy capacity and the infrastructure that's needed," she said.

She added that Google is increasingly investing directly in energy projects alongside data centres to ensure sufficient power supply.

"We are adding, we're net investors in adding capacity when we build a data centre," Porat said, noting that such projects can help stabilise electricity prices if executed properly.

Wright argued that higher electricity demand from data centres could actually lower long-term power prices by improving utilisation of existing infrastructure.

"The key to driving down electricity prices is to grow demand," he said, adding that increased consumption allows utilities to spread fixed costs across a larger base.

He said states that encourage energy investment and electricity generation are likely to benefit economically.

"The states that attract that investment are gonna win," Wright said.

Beyond infrastructure, panellists warned that workforce shortages could slow the build-out of power systems and data centres.

Wright highlighted the need for more skilled trade workers, including electricians, plumbers and welders, to support the construction of energy infrastructure.

"Probably the biggest constraint is gonna be our ability with craftsmen, trade labour... to be able to build these giant complicated infrastructures," he said.

- IANS