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AI accelerates electricity demand, prompting a new wave of grid adaptation and investment

The rapid expansion of AI-driven data centers is not only increasing electricity demand, but making it significantly harder to predict, challenging how power systems are planned and delivered. A large majority of electricity executives expect more extreme and less predictable demand spikes, while more than three quarters say they struggle to forecast future needs accurately, according to the Capgemini Research Institute’s latest report, AI meets the grid: shaping the data center power play. The research, which surveyed over 600 senior electricity executives from organizations with annual revenue exceeding $500 million, highlights how power systems are entering a new phase as AI…