U.S. debates energy strategy for AI data centers

President Trump has recently announced an energy emergency in the U.S. This emergency arises from the increasing electricity demand for up to 5,000 new data centers needed to support the growth of artificial intelligence (AI). In response, Trump and his Secretary of Energy, Chris Wright, are advocating for the use of natural gas to power these data centers. Wright criticized previous efforts to focus on renewable energy, suggesting they have not proven dependable. However, studies show that when solar and wind energy are combined with battery storage systems, they can be cost-effective and reliable sources of electricity. These renewable sources are called "green SoWiBess," which stands for solar, wind, and battery energy storage. A report from JP Morgan highlights some key facts about energy usage. It notes that fossil fuels still dominate global energy consumption. In countries like the U.S. and parts of Asia, the reliance on fossil fuels is high but gradually declining. Meanwhile, renewable energy has only modestly increased its share of global energy over the years. The report also warns about climate change impacts. Since the 1950s, global temperatures have increased nearly 1°C. Predictions suggest further rises could have dire consequences, like significant sea-level increases, which could affect many coastal nations. Additionally, if global warming continues unchecked, serious ecological damage, such as the degradation of coral reefs, could occur. For data centers, the expansion of electricity supply is pressing. However, existing infrastructure for new transmission lines and transformers is facing delays. The cost of electricity is currently higher than natural gas in the U.S., which complicates the shift toward electrification. Despite the challenges, innovation in renewable energy is advancing. For instance, South Australia has significantly increased its reliance on SoWiBess renewables in recent years. Battery storage technology is also improving, with costs decreasing and capacity increasing. The U.S. is experiencing strong growth in renewable energy installations. In 2024, renewables accounted for about 90% of new installed capacity, with notable contributions from solar power and battery systems. However, creating new gas-fired plants may not meet the urgent demand as they are often slower to build than renewable installations. Some proposals suggest linking new renewable energy sources to existing gas plants to help fill gaps in supply. Still, experts argue that expanding SoWiBess sources should take priority, as they offer a cleaner, more efficient solution for electricity generation. In summary, reliance on natural gas is debated against the potential of renewable energy sources in tackling the increasing power demands from data centers for AI. As the U.S. navigates its energy strategy, finding a balance between these two options remains critical.