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The electricity needs of AI data centers present an extraordinary growth opportunity for the electricity sector, a traditionally slow-moving industry. At the same time, data centers seek to minimize their large electricity costs. Senior Consultant Soren Christian and Director Laura T.W. Olive explore this dynamic in their new article "An Unstoppable Force Meets an Immovable Object: The Fundamental Tensions Between the Dynamic AI Industry and the Steel-in-the-Ground Electricity Infrastructure Industry."
Mr. Christian and Dr. Olive discuss ongoing questions and concerns from the data center and the electricity sector perspectives, outlining some of the challenges that could impact these industries' markets as the two intersect. Factors to keep in mind include the uncertainty around energy demand forecasts, growing wait times in the interconnection queue, and the complicated decisions data centers must make about grid reliance versus producing their own energy.
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