AI's Rising Demand for Power Presents Challenges for US Data Centers
With artificial intelligence (AI) driving change across industries, the growing need for high-density data centers is driving US power consumption to new heights. The increase in power requirements is challenging developers and operators to find stable, scalable, and sustainable sources of energy.
The upcoming Appalachian AI Energy Conference, to take place on May 21, 2025, at Hilton Garden Inn at Southpointe/Pittsburgh, will endeavor to tackle such pressing concerns and gather industry heads, energy experts, and site selection officials on a platform to discuss the future of AI-infused energy use.
The Increasing Burden on US Power Grid
AI data centers have massive energy requirements, needing continuous electricity to power high-performance computing hardware and intensive cooling systems. This demand is expected to reach record levels in 2025 and 2026, with AI driving much of the surge. However, meeting this rising demand is becoming increasingly complex.
The rapid expansion of AI data centers is placing enormous stress on the US grid, which is already hampered by transmission constraints and multi-year interconnection backlogs.
Meanwhile, technology firms' pledges to achieve net-zero carbon are being tested, as renewable energy production lags behind, holding up the shift away from coal and jeopardizing grid stability.
Moreover, increased competition for scarce power is driving up electricity costs, raising concerns among lawmakers and communities about affordability and wider economic effects.
Also read: Invenergy Awards $1.7B for Grain Belt Express to Power AI Growth
Appalachian Region Provides the Solution for AI Data Centers
The Appalachian area, the Marcellus/Utica Basin in general, is especially well-positioned to meet these challenges due to its vast and secure natural gas reserves and prospective clean energy facilities.
This makes it an ideal location for new AI data center projects. The Appalachian AI Energy Conference will explore how the region can serve as a cornerstone in the development of sustainable energy infrastructure for AI-driven growth.
Bryce A. Custer, SIOR, CCIM, said, “The Appalachian AI Energy Conference is a must-attend event for anyone serious about solving the AI data center power crisis and unlocking the region’s full potential as a national leader in digital infrastructure,”
The conference will highlight the Appalachian Basin's robust energy infrastructure and potential for AI data center-specific real estate development.
Experts will present cutting-edge energy solutions like on-site generation, microgrids, demand response, and integration of nuclear and renewable sources to provide a stable supply of power. Furthermore, the event will create opportunities for developers, utilities, policymakers, and technology providers to come together to advance project schedules and obtain long-term, reliable energy contracts.
