The summer heat surges, the explosion of AI data centers, the shocking power grid and the shrinking pool of skilled workers are all driving electricity bills and making power outages more likely across North America. Experts warn that these pressures will not develop rapidly, with higher costs and greater risks expected in the next decade at least.
Higher temperature = higher risk
North American Energy Reliability Corporation (NAERC) 2024 Long-term reliability assessment (LTRA)Updated last month, “…more than half of the mainland’s energy shortage risk is higher or higher in the next 5 to 10 years.”
Naerco is an international agency responsible for ensuring the reliability and safety of North American batch power systems.
According to the National Oceanic and Atmospheric Administration (NOAA), global warming is getting hotter and hotter throughout the year. This means that the temperatures are getting higher and higher in winter, thus reducing heating costs. However, these savings will be offset by hotter summer temperatures, which triggers higher cooling costs.
“Because of the high temperature, economists estimate Consumers’ net energy costs will increase by 10% to 22%,” according to NOAA.
Development of AI data centers and energy use
The classic answer to this question: “Is it hot enough for you?” is: “It’s not just heat. It’s humidity.”
And, about the rise in electric costs – not just heat. This is also the rapid development of artificial intelligence (AI) data centers.
In a study released in April, the International Energy Agency (IEA) detailed the Double-edged sword AI is related to the developing energy crisis. IEA Provide policy advice, analysis and data to member states in the global energy sector. The United States is a member.
“In the next five years, global electricity demand for data centers will more than double, with as much electricity as Japan today as in 2030,” said Fatih Birol, executive director of IEA. “In some countries, this impact will be particularly strong. In the United States, for example, data centers can certainly account for almost half of the growth in electricity demand; in Japan, more than half; in Malaysia, up to one fifth.”
Additionally, the IEA report predicts that U.S. data centers will swallow more electricity than integrated electricity from aluminum, steel, cement and chemical manufacturers.
Problem-solving potential
The IEA reported that AI data centers will drive power demand to increase electricity demand. However, hopefully, the technology can help solve the problem.
AI can be used to reduce overall energy use. It can optimize energy consumption in the target area, improve grid management, and help develop more efficient energy technologies such as batteries and solar energy. But the biggest barrier to using AI to improve energy efficiency is probably us.
“With the rise of artificial intelligence, the energy sector was at the forefront of one of the most important technological revolutions of the time,” said Dr. Birol. “AI is a tool, and may be a very powerful tool, but it depends on our society, government and companies – how we use it.”
Big beautiful high energy bill
It may be a faint hope to count on the U.S. government to use AI technology to reduce energy costs.
President Donald Trump partially runs halfway through the initial 12 months Back to the White House. However, one of his large Bill Acts (OBBBA) was signed into law on July 4 It will actually increase energy costsEnergy Innovation (EI), according to the nonpartisan research group.
This measure abolishes many clean energy and renewable incentives. These incentives are mainly tax relief for wind and solar projects. In addition, the credit for energy-saving home decoration and new house construction has been stopped. Although funding for agricultural and forestry conservation has been delayed.
Instead, Obbba expanded oil and gas leases on public lands and reduced the cost of oil companies paying the government for diamond oil on those lands.
Higher rates on the way
According to EI, Trump laws will lower the country’s power capacity and increase your electricity bills.
According to EI, the U.S.’s energy production capacity will drop by 340 GW by 2035. This will result in a 25% increase in wholesale electricity prices by 2030 and a 74% increase by 2035. For you, this means your electricity bill is up 9% to 18%.
Many Americans are already struggling with high energy costs. More than one-third (34.3%) of those who participated in the lender survey reported Reduce or skip payments to cover their utility bills In 2024. These essentials include food and medicine. Additionally, 23.4% were unable to pay part or all of their utility bills, while 22.8% reported keeping their homes at unhealthy or unsafe temperatures.
Installation pressure on the grid
Even if AI data centers do not increase electricity demand, the country’s ability to meet future needs will be challenging.
The Ministry of Energy (DOE) report 70% of the U.S. transmission lines have been over 25 years. In addition, 55% of transformers have a history of 33 years. As a result, many parts of the grid work longer than expected. This also increases the demand variable, especially the peak, increasing the risk of interruptions.
Other difficulties include aging labor force. about 25% of electrical and gas utility workers will retire According to DOE, in the next five years.
More cost than electricity bills
Soaring temperatures and other reasons for increased electrical uses can not only cause financial losses—they can be life-threatening.
Last summer was the hottest on recordAccording to NASA, it is expected to be close to matching this summer. As the height of heat increases, the weather events increase. Currently, most parts of the country are under the thermal dome. On the east coast, conditions for the heat index reaching 115 degrees are particularly severe.
The number of heat-related deaths has been growing over the past seven years, setting a new record in 2023 – 2,235 people died from oppressive temperatures. However, the losses may be higher. one Science USAn The article points out the official “The numbers rely on death certificates filled in by coroners, medical examiners and other doctors who usually do not consider the potential lethality of Heat until they prove the cause of death. ”
The risk of severe illness or high temperature death is The greatest of the disadvantaged According to the Center for Progress (CAP), Americans. These include low-income, elderly people and people with chronic diseases.
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Max K. Erkiletian started writing for newspapers while still in high school. He continues to be an award-winning journalist and co-founder of Free Bird. He has written for various regional and national publications as well as many online publications. This gave him the opportunity to interview former Fed president Paul Volker to the muddy waters of Blues Musicians and various famous figures from BB King. Max lives in Springfield, Missouri with his wife Karen and their cat-Pudge. He spent as much time as possible with his children, grandchildren and great-grandchildren.
