by William Upton, The National Pulse:
The increasing power demands required for advanced artificial intelligence (AI) systems and cryptocurrency could see United States-based data centers consume upwards of 12 percent of all total domestic electricity by 2028, according to a Department of Energy (DOE) report. This would be a significant increase from the estimated 4.4 percent of total electricity supply consumption attributed to data centers in 2023.
“The report finds that data centers consumed about 4.4% of total U.S. electricity in 2023 and are expected to consume approximately 6.7 to 12% of total U.S. electricity by 2028. The report indicates that total data center electricity usage climbed from 58 TWh in 2014 to 176 TWh in 2023 and estimates an increase between 325 to 580 TWh by 2028,” the DOE report states.
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Notably, DOE officials say policies such as adding greater flexibility for data centers to engage in on-site power generation could ease increasing burdens on electrical grids. Additionally, President Donald J. Trump announced his administration is aiming to bring back online a number of coal-fired power plants—ostensibly to boost U.S. electricity capacity and counter China’s advantage from the use of coal-fired power.
Both artificial intelligence and cryptocurrencies are power-intensive in technology industries, and companies in those sectors have pushed for greater electrical grid capacity and relief on power consumption costs. Some regions of the United States saw significant jumps in electricity prices under former President Joe Biden—especially industrial price rates. The National Pulse reported last year that Minnesota—under Governor Tim Walz (D-MN), the failed Democratic Party vice presidential candidate—has seen industrial electric rates soar—reaching 30 percent higher than the national average.
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