All articles tagged with #energy demand
Global investment in data centers reached a record $61 billion in 2025, driven by the AI boom and ongoing demand for infrastructure, with projections indicating rapid expansion over the next five years despite concerns over potential overspending and energy consumption.
The rapid growth of data centers, expected to increase energy consumption significantly by 2030, is causing political and public concern. Big Tech companies and industry groups are actively lobbying and campaigning to shape public perception and policy, emphasizing that data centers are not the primary drivers of rising energy costs and highlighting infrastructure issues instead.
The IEA warns that global electricity demand is surging beyond emerging economies, driven by renewable growth and electrification, with significant implications for energy security and climate goals, despite political setbacks like the US's withdrawal from the Paris Agreement.
Oil prices surged over $2 per barrel following US sanctions on Russian oil giants Rosneft and Lukoil, amid strong US energy demand and falling US crude inventories. The sanctions, coupled with geopolitical tensions and potential trade deal developments between the US and China, have contributed to the rally in oil markets.
Oil prices are on track for a weekly decline of nearly 3% due to a forecast of increasing supply glut by the IEA, easing conflicts in Ukraine and Gaza, and concerns over a slowing global economy and lower energy demand, despite small gains in recent trading.
Rising electricity bills are partly driven by increased demand from the AI industry, which requires significant power for data centers and advanced computing, alongside infrastructure upgrades and climate-related grid maintenance, leading to higher costs for consumers.
NYC faces potential increased blackouts as aging infrastructure, rising demand, and weak transmission threaten the power grid, with forecasts indicating a significant supply-demand gap by next summer that could worsen by 2050, prompting calls for new power sources and infrastructure upgrades.
Private investment firms are increasingly investing in utilities to capitalize on the rising energy demand from AI and data centers, with significant deals and regulatory battles occurring across the U.S., raising concerns about higher electricity rates and the influence of private equity on public utilities.
North Carolina communities are debating the expansion of data centers due to concerns over increased power demand, higher bills for residents, grid strain, and environmental impacts, amid new policies shifting costs from large corporations to households and uncertainties about future energy needs and climate effects.
As Europe faces increasingly frequent and severe heatwaves, air conditioning use is rapidly rising, transforming from a luxury to a necessity, which strains power grids and raises environmental concerns. Countries are adapting infrastructure and policies to manage the surge in cooling demand while balancing sustainability and energy security.
Traders remain skeptical about OPEC's ability to significantly increase oil production, which keeps oil prices elevated despite a planned boost of 2.2 million barrels per day. The actual increase in production has been smaller than announced, and capacity limits in countries like Saudi Arabia and Russia suggest prices may fall below $60 later this year, although current prices remain relatively high due to market disbelief.
Rising demand from data centers, especially in PJM's territory, has led to a 22% increase in wholesale electricity prices from 2024, causing potential utility bill hikes of up to 5% for 67 million customers across 13 states, with concerns over the impact on residential affordability and the transfer of wealth to large corporations.
Electricity prices are rising sharply across 13 US states due to increased demand from data centers powering AI technologies, with PJM Interconnection planning a 20% price hike this summer. The surge is driven by tech companies bidding heavily in power auctions, a shortage of fossil-fuel plants, and delays in renewable energy projects, raising concerns about sustainability and consumer costs.
ExxonMobil plans to build a large natural gas-fired power plant dedicated to supplying electricity to data centers, with a capacity exceeding 1,500 MW. The plant will feature technology to capture over 90% of its carbon emissions, addressing the rising energy demand from AI and tech sectors. Exxon aims to have the plant operational within five years, bypassing grid connection to expedite the process. This move aligns with Exxon's broader strategy to invest in low-carbon technologies and increase its oil and gas production by 18% by 2030.
Texas will need nearly double its current power supply by 2030 due to increasing population and high demand from large customers like oil and gas companies and data centers. ERCOT predicts demand could reach 150GW, up from last year's record 85GW. New legislation and large customer practices are causing concerns among residents. While reforms were made after Winter Storm Uri, critics argue they are insufficient. However, the situation may boost renewable energy initiatives and conservation programs.