Utilities caught by surprise as energy demand rises, report finds

Utilities will struggle to meet electricity demand in the US, which is experiencing the strongest growth in decades, according to a new report from consulting firm Wood Mackenzie.

The report predicts that electricity demand will grow between 4% and 15% by 2029, depending on the region. This growth, analysts concluded, will be driven by the development of data centers, the resurgence of national production and the electrification of industries such as transport and heating.

“Because it’s a surprise, because this demand wants to connect now, and because planning and building new infrastructure typically takes five to 10 years, the utility industry is not prepared to meet the demand it wants to connect.” , said Chris Seiple, the study’s author, in an email.

Data centers alone may need 25,000 megawatts of new energy over the next five years, due to the growth of artificial intelligence, according to the report. U.S. production projects in areas such as batteries, solar power and semiconductors are expected to increase demand by 15,000 megawatts. And broader electrification of the economy could add another 7,000 megawatts of demand by 2030.