AI Data Center Growth Could Force US Utilities to Rethink Generation Plans, BofA Says
A Bank of America report warns that surging AI-driven data center demand could create a significant electricity supply gap in the United States. The analysts forecast the US will need over 230 GW of new generating capacity in the next five years, but regulated utilities are expected to add only about 93 GW, leaving a shortfall of more than 100 GW. Data centers alone could add roughly 125 GW of load, pushing electricity demand growth to a 4.1% compound annual rate through 2030. With large gas turbines largely sold out through 2030, developers are turning to on-site gas engines, while utilities extend coal plant operations, deploy batteries, and pursue transmission upgrades. The report highlights that intermittent renewables like wind and solar contribute less accredited capacity during peak demand, making firm resources essential. Coal plant retirements have been delayed or canceled in several states to preserve dispatchable capacity.
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