Bitcoin mining and AI applications consume huge amounts of energy. One estimate recently showed that AI’s energy capacity needs would match those of the entire country of Japan within a few years. The US has a simple problem when faced with the need for more electricity. Not enough is generated, and much of the country’s grid is not set up to deliver substantially more electricity than today.
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According to InsideClimate News, Texas’s grid problem has become particularly desperate. The current massive heat wave has triggered air conditioning use. Hurricane Beryl left almost two million people without electricity. The news outlet reports, “During cold spells or heat waves, Texans are commonly called on to conserve power. For example, in August 2023, the state’s grid operator issued eight conservation requests, asking the public to reduce electricity use to help prevent an emergency in which rolling blackouts could be required. Increasingly, Texas lawmakers are worried that energy-hungry mines will make it harder to keep the lights on across the state.”
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The problem can be divided into pieces. The first of these is electricity rates. As demand soars, utilities will certainly look for higher rates to build or rebuild infrastructures. Second is simple access to electricity at any price. Texas is one of many parts of the country where this is true. AI installations in Virginia also draw enough power to max out energy generation.,
Eventually, electricity distribution, prices, and availability will become political issues. AI lobbyists will be on one side, and voters will be on the other.
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