Data centers and AI to drive high electricity and prices

Electricity prices It increased during the past year, which doubled the total inflation rate due to the high demand and an increase in investment in the aging network.

Prices increased by 4.5 % in May on an annual basis, according to the Labor Statistics Office. Consumer price index (CPI), a wide scale for the cost of daily goods such as gasoline, grocery and rent. The total inflation rate for all goods and services was in May 2.4 %.

Electricity demand has reached a record level at all, according to Flynn Elephant, Senior Energy Officer in the PRICE FUTERES group and a FOX shareholder.

This was the case even before the first main heat wave of this season brought some of the most important temperatures that were seen in a century to cities throughout the northeast on Monday, which prompted an increase in the use of the air conditioner, which increases the demand for electricity. “Despite the improvements in the efficiency of the air conditioner,” the total effect on the use of electricity is still large but necessary for health benefits. “

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Dangerous hot conditions It is also expected to continue, with the National Weather Office in New York on Monday that the heat index values ​​are up to 110 degrees expected in parts of the south of Connecticut, northeast New Jersey and southeast New York.

Chicago’s National Weather Office published on Tuesday that thermologists may continue to exceed 100 degrees in the region.

Also, the rapid increase in electricity demand is largely driven by the necessary data centers for training and the publication and operation of technical intelligence models, according to Vlein and Rob Thomel, the great portfolio manager at Tortoise Capital.

Tell Thummel Fox Business that databases have a huge computing power that performs the tasks required Artificial Intelligence Applications To work, but they depend on the energy infrastructure to generate, transport and distribute electricity.

The increased investment by Easter who build larger data centers along with increased computing power contributes to high demand for electricity after decades of stagnant electricity demand, according to Thomil.

Flynn said that the electricity consumption in the data center had doubled three times to 176 hours of TErawatt in the past decade and may double or three times again within three years.

Think Energy Think Tank says fossil fuels generate less than half of the electricity in the first month.

The International Energy Agency makes the American economy to consume more electricity in 2030 to process data more than manufacturing all intense energy commodities combined, including aluminum, steel, cement and chemicals, and this is largely due to the use of artistic intelligence.

Another factor that increases the costs of consumer is to invest the capital in the electrical infrastructure, according to Energy Information Management (EIA).

These investments have multiplied more than weakness between 2003 and 2023 due to a mixture of factors, including replacement and upgrading of aging structure and delivery of infrastructure to resist fire damages and storms, as well as facilities that prove the first generation working on natural gas, then generating wind and battery. New lines have been connected to renewable resources and new technology, such as smart meters, sensors and automatic controls, in addition to the system, which added to the costs.

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The problem is that the current demand exceeds the capacity of the offer in the country, which is only “the exacerbation of issues with the infrastructure methods of aging and energy generation,” according to Flynn, who added that private industries are now transferring to the generation of private energy to meet their needs, which require more investment in infrastructure.

“The American Electricity Network needs an investment to update it to maintain reliability as well as expansion in anticipation of the increasing demand” and that “the increase in the use of low cost, natural gas can help with higher efficiency to generate electricity in maintaining an increase in the cost of the consumer.”

However, the network reform “will be the biggest challenge to our economy to move forward,” according to Vleen.

“We must increase the power of electricity so that we can be a leader in the technologies that will lead the economy of the future, which are artificial intelligence data centers and the like,” he said.