WARNING: AI Sparks Energy Grid Risks

Daily Profit Investing Research
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America’s energy grid is tapped out.

Artificial Intelligence is creating a surge in electricity demand.

Coal power plants are being shut down. Meanwhile, clean energy sources including wind and solar can’t grow fast enough to meet demand.

So, who is behind this initiative?

  • Bill Gates and Warren Buffett just broke ground on one of these projects in Wyoming.

  • OpenAI CEO Sam Altman is investing billions in two new startups developing this technology.

  • Amazon founder Jeff Bezos is investing in a U.K. startup developing a cutting-edge technology.

PJM Interconnection is the largest grid operator in the U.S.

They operate the electric grid in 13 mid-Atlantic states. This includes Virginia – which is home to more data centers than any other state.

PJM warns that the reliability of America’s energy grid is at risk.

This could cause frequent power outages unless more electricity comes online quickly.

There are two big issues at play…

First, existing coal power plants are going offline.

This is because electric utilities have promised to reduce carbon emissions. This means closing coal power plants and replacing them with wind, solar, natural gas and new Oppenheimer Projects.

Second, Artificial Intelligence is sparking huge new demands for energy.

AI applications use huge amounts of electricity. This creates huge demand for the expansion of existing data centers and building new locations.

Dominion Energy (NYSE: D) is the biggest electric utility in Virginia.

Dominion has already connected 9 new AI data centers this year. And it expects a total of 15 new data centers in 2024.

“Growth is accelerating in orders of magnitude, driven by the number of requests, the size of each facility and the acceleration of each facility’s ramp schedule to reach full capacity.

We’re taking the steps necessary to ensure our system remains resilient and reliable,” explained Dominion’s CEO on August 1.

Dominion is looking to ramp up energy production in Virginia.

That’s why the company is planning to build a new Oppenheimer Project near its nuclear power plant near Richmond, Virginia.

Ian

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