Trump admin tackles urgent electrical grid crisis as AI set to double demand

Fox News

17-07-2025

Over the next two decades, global electricity demand is expected to double, growth we haven't seen since post-World War II.
To meet historic projections, we need to generate abundant, reliable and affordable energy at a massive scale. But new generation won't be enough. We must dramatically modernize the country's electrical grid infrastructure, the invisible backbone of our entire energy system.
Transforming this aging infrastructure – which has been built up over a century – into a state-of-the art system is critical if the U.S. is to maintain its competitive lead on the global stage.
It is hard to overstate the urgency: America's economy is only as strong as the grids that power it.
The Energy Department reinforced this view last week, saying in a report: "Electricity demand from AI-driven data centers and advanced manufacturing is rising at a record pace. The magnitude and speed of projected load growth cannot be met with existing approaches to load addition and grid management."
Energy Secretary Chris Wright added a more personal view to the issue, saying, "We produce energy for one reason, which is to better people's lives. So having a reliable grid that's as affordable as possible and that can grow so we can bring industry and more job opportunities to our states and communities is just critical."
I couldn't agree more. Boosting investments in the grid will expand high-tech U.S. manufacturing, create jobs and develop a stronger domestic supply chain. For the U.S. to truly lead the world in energy, manufacturing electrification infrastructure here at home is just as important as increased generation.
This issue was front and center at the Pennsylvania Energy and Innovation Summit earlier this week, where President Donald Trump, members of his Cabinet and industry leaders discussed the key steps we must prioritize across the energy industry.
The grid we have today wasn't designed for the world we're building. Originally conceived in the early 20th century for electricity to travel in one direction, the grid now faces volatile, multi-directional energy flows. Peak demand is higher. Extreme weather more uncertain. Sources are more distributed.
While our systems are strong, the pressures we're putting on it are unlike anything earlier generations ever imagined.
But this challenge can be a historic moment for huge progress, not just incremental improvements. It's why we are adding $100 million in investments and 700 new jobs over the next two years and expanding capacity at our leading grid solutions factories in Pennsylvania.
The new roles and added manufacturing volume will help support building more high-voltage switchgear products, critical components for stable and reliable operation of the nation's electrical grids.
Energy-intensive, next-gen industries like high-tech manufacturing and AI will locate where they can access reliable, efficient power. Communities and countries that modernize their grids will attract investment and jobs, and those that don't will watch opportunities move elsewhere.
The bottom line – if we build a smarter, stronger electrical grid, our economy will grow faster, we will create more jobs and American families will save money.
So what can we do? The first step is to recognize the urgency that drives bold, sustained investment, since the International Energy Agency estimates we must double grid investment by 2030 to meet demand.
Second is stronger public-private partnerships. Smart policies from the federal government are crucial, but companies like ours must be prepared to make the investments to build the factories and hire the workers that are needed.
Third is accelerated permitting reform. Right now, it takes longer to get approval to build a transmission line than it does to actually build it, delaying access to bringing more power online, slowing job creation and holding back communities from modernizing their energy systems. We need to supercharge grid upgrades, not bury them in red tape.
Embracing new technologies will also be critical. Applying AI, advanced software and machine learning to grid management offers utilities the capability to process vast amounts of data in real-time, enabling better decision-making, optimization of existing infrastructure and smarter load management.
When the lights first came on, it helped power decades of prosperity. Now, this Age of Electricity will determine whether we can power a sustainable future for America and bring affordable energy to everyone who needs it.