Power Production and Demand in the US

Although America’s energy production is at an all-time high, it’s not nearly enough to meet future energy demand.  The United States needs to address its aging power grid and find innovative ways to produce more power.  Otherwise, future demand will not be met, leading to consequences with staggering implications. 

In the next 25 years, power demand in the United States will be 50% higher than it is today.  We will need a minimum of 5,178 terawatt hours (TWh) to match demand in 2050; in 2023, US power use was 4,049 TWh. 

There are several factors driving the spike in energy demand.  For example, the increased adoption of electric vehicles is boosting energy usage.  In fact, electric vehicle use could add an extra 100 TWh to 185 TWh to the national electricity demand by 2030. 

AI is another leading cause of increased energy demand.  Each AI server request requires roughly 8 watt-hours (Wh) of energy.  This is the equivalent of an LED lightbulb, and is around 23x to 30x the energy of a normal internet search.  NVIDIA will ship 1.5 million AI server units annually by 2027, further contributing to increased energy demand.  At full capacity, these servers would consume 85.4 TWh of electricity yearly (and this doesn’t even include cooling costs). 

Consequences are severe if energy demand is not met.  Without power, fuel cannot be pumped on demand.  Supply chains can stall within hours and communication networks can be shut down, leaving people without access to necessities such as food and medicine, and without the ability to find information or contact loved ones.  Additionally, banking services could be disrupted, reducing access to point-of-sale kiosks or credit card scanners. 

The current electrical grid is inefficient; between 2018 and 2022, 5% of electricity transmitted and distributed in the United States was lost annually.  Upgrading the nation’s power infrastructure would go a long way in meeting power demand.  However, this is easier said than done; replacing this infrastructure is costly and time-consuming. 

In order to produce more energy fast, the United States is turning to alternative energy sources.  In fact, the government has set a goal to quadruple its nuclear energy production by 2050.  Another strategy is to work with US-based suppliers.  Companies such as ELSCO have 90% item availability, 24-48 hour quick-ship and a 5 year warranty, making them more efficient options for purchasing important equipment. 

As energy consumption increases nationwide, the United States has to develop creative solutions to keep up.  Exploring alternative energy sources and buying from US-based suppliers will be important steps to take.