Could Data Centers be the Catalyst for Modernizing the U.S. Electric Grid?

Jeff Johnston and Teri Viswanath

September 24, 2024

Key Points

• A new age of electricity growth is here. Data center demand growth is the most visible sign of the changing times, testing the ability of utility suppliers to keep pace.
• The fundamental mismatch in infrastructure build-out — between the time it takes to build a data center versus the time to build the electricity infrastructure — demands novel solutions.
• Creative adaptation has always been the name of the game but this time around some of the more innovative solutions are actually coming from consumers — at a scale and pace that will have lasting impacts on the industry.
• Indeed, data centers could shift data processing workloads to times or geographies where the grid is less congested. What’s more, AI holds the promise on reducing the remaining energy consumption for other consuming sectors.
• Data centers are just the first wave in the fourth Industrial Revolution, launching the world into a full-fledged digital economy.

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