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AI-Driven Energy Demand Will Exacerbate Energy Grid Shortage of Transformers

June 18, 2024


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The rapid growth of artificial intelligence (AI) will lead to increased demand for energy and water resources, particularly in the US. With over 8,000 data centers globally, including one-third located in the US, AI’s added computational power drives significant demand for these resources. A shortage of transformers, a critical component of grid infrastructure, continues to create constraints within US energy markets.

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