T. Rowe Price
AI Innovations Addressing U.S. Energy Challenges
Pages
5
Time to read
15 mins
Publication
Language
English
Pages
5
Time to read
15 mins
Publication
Language
English
This technical report discusses how artificial intelligence (AI) innovations could help address the energy challenges faced by the United States. It outlines the increasing demand for electricity driven by the rise of generative AI and the growth of data centers, which are expected to account for a significant portion of U.S. electricity consumption by 2035. The report details the potential of AI to enhance grid efficiency, improve renewable energy integration, and optimize energy storage systems. It explains how AI algorithms can assist in smart grid management, predict power demand fluctuations, and improve renewable energy forecasting. The document also highlights the current state of energy demand and the role of various energy sources, including renewables and natural gas, in meeting future electricity needs. Furthermore, it discusses the potential short-term negative impact of AI-related energy demand on decarbonization efforts, while emphasizing the importance of energy efficiency improvements across the AI supply chain.