AI and electric vehicles drive surge in power grid demand

The rapid expansion of artificial intelligence (AI) and electric vehicles (EVs) is creating significant new pressures on global and domestic power grids. AI data centers are emerging as a major bottleneck; while the competition for GPUs continues, the demand for electricity and the infrastructure to transport it—such as transformers and switchgear—is surging. In the United States, Goldman Sachs reports that AI data centers are expected to account for approximately 70% of the increase in power demand between 2025 and 2030. This has led to severe supply shortages for critical components like large power transformers, with lead times extending from months to several years.

Simultaneously, the rise of electric vehicles presents both a challenge and an opportunity for grid management. While the total annual electricity consumption of EVs is manageable, concentrated charging during peak hours could overwhelm local distribution networks. To mitigate this, technologies like Vehicle-to-Grid (V2G) are being explored. V2G allows EVs to act as mobile energy storage systems, discharging electricity back into the grid during peak demand and charging when renewable energy production is high. Effective management of when and where vehicles charge will be as critical as increasing power generation capacity.