Latest news with #AndreasSchierenbeck
Yahoo
07-07-2025
- Business
- Yahoo
AI power demand poses global supply risks, says Hitachi Energy
The increasing electricity consumption by tech companies for AI training poses risks to global power supply stability, according to Hitachi Energy CEO Andreas Schierenbeck. In an interview with the Financial Times, Schierenbeck emphasised the need for government intervention to regulate the volatile power usage characteristic of AI operations. Schierenbeck highlighted that AI data centres exhibit significant fluctuations in power demand, unlike traditional office data centres. 'AI data centres are very, very different from these office data centres because they really spike up,' he told FT. 'If you start your AI algorithm to learn and give them data to digest, they're peaking in seconds and going up to 10 times what they have normally used.' He advocated for regulatory measures similar to those applied to other industries, such as notifying utilities before initiating high power-consuming operations. The International Energy Agency forecasts that data centre electricity usage will double to 945 terawatt-hours (TWh) by 2030, surpassing the current consumption of countries such as Japan. Countries such as Ireland and the Netherlands have already imposed restrictions on new data centre developments due to concerns over their impact on electricity networks. A US Department of Energy (DOE)-backed report, released in December last year, indicated that data centre power demand is projected to double or triple by 2028. The report, produced by Lawrence Berkeley National Laboratory, noted that total electricity usage by data centres jumped from 58TWh in 2014 to 176 TWh in 2023. Projections estimate this could rise further to between 325TWh and 580TWh by 2028. Analysts at consultancy company Rystad Energy told FT that AI's power demands could potentially stabilise electricity grids if tech companies set maximum power limits and align AI model training with periods of abundant renewable energy. Hitachi Energy is currently dealing with a global shortage of power transformers. Schierenbeck noted that addressing this shortage could take up to three years. "AI power demand poses global supply risks, says Hitachi Energy" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
07-07-2025
- Business
- Yahoo
AI power demand poses global supply risks, says Hitachi Energy
The increasing electricity consumption by tech companies for AI training poses risks to global power supply stability, according to Hitachi Energy CEO Andreas Schierenbeck. In an interview with the Financial Times, Schierenbeck emphasised the need for government intervention to regulate the volatile power usage characteristic of AI operations. Schierenbeck highlighted that AI data centres exhibit significant fluctuations in power demand, unlike traditional office data centres. 'AI data centres are very, very different from these office data centres because they really spike up,' he told FT. 'If you start your AI algorithm to learn and give them data to digest, they're peaking in seconds and going up to 10 times what they have normally used.' He advocated for regulatory measures similar to those applied to other industries, such as notifying utilities before initiating high power-consuming operations. The International Energy Agency forecasts that data centre electricity usage will double to 945 terawatt-hours (TWh) by 2030, surpassing the current consumption of countries such as Japan. Countries such as Ireland and the Netherlands have already imposed restrictions on new data centre developments due to concerns over their impact on electricity networks. A US Department of Energy (DOE)-backed report, released in December last year, indicated that data centre power demand is projected to double or triple by 2028. The report, produced by Lawrence Berkeley National Laboratory, noted that total electricity usage by data centres jumped from 58TWh in 2014 to 176 TWh in 2023. Projections estimate this could rise further to between 325TWh and 580TWh by 2028. Analysts at consultancy company Rystad Energy told FT that AI's power demands could potentially stabilise electricity grids if tech companies set maximum power limits and align AI model training with periods of abundant renewable energy. Hitachi Energy is currently dealing with a global shortage of power transformers. Schierenbeck noted that addressing this shortage could take up to three years. "AI power demand poses global supply risks, says Hitachi Energy" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mid East Info
12-03-2025
- Automotive
- Mid East Info
Hitachi Energy invests additional $250 million USD to address global transformer shortage - Middle East Business News and Information
More than 40 percent of the total investment dedicated to the U.S. underpins commitment to scale up the industry to meet surging transformer demand The U.S. investment includes hiring more than 100 people to expand domestic key component manufacturing to strengthen local supply chain Builds on the $6 billion USD investment announced in 2024 – the largest in the industry in recent years to respond to the urgent need to upgrade power grids Dubai, UAE – Hitachi Energy announced today at CERAWeek additional major investments of more than $250 million USD by 2027 to expand global production of critical components for transformers. This rapid follow-up to the recently announced $6 billion USD investment across the company portfolio reflects the escalating transformer shortage, which continues to increase. As the electrification of industries, particularly data centers and AI, drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections. To keep pace with this accelerating demand, Hitachi Energy is expanding its commitment to scale up production and strengthen supply chains in the U.S. and worldwide. These investments bolster Hitachi Energy's manufacturing capabilities across the U.S., enhancing production capacity at the company's transformer factories in Virginia, Missouri, and Mississippi. It includes transformer components such as bushings and insulation as Hitachi Energy is a critical supplier to other transformer manufacturers. This pivotal move will also help alleviate the broader, ongoing transformer supply shortage, ensuring increased production capacity and supply-chain resilience. The global investment program, one of the most significant in the industry today, also strengthens Hitachi Energy's manufacturing capabilities in Asia, South America, and Europe. 'The demand for transformers and grid infrastructure is rising at an unprecedented scale and pace,' said Andreas Schierenbeck, CEO of Hitachi Energy. 'As the world's largest transformer manufacturer, we have a responsibility to expand our capacity and accelerate the delivery of transformers and essential components, helping the industry scale up faster and advance critical infrastructure projects.' Transformer investments are part of a broader, multi-billion-dollar investment plan that Hitachi Energy is deploying across its manufacturing, engineering, digital, R&D, and partnership activities. These investments are being rolled out across all major markets globally to enable the company to meet customers' commitments and market demand. Hitachi Energy is also delivering enhancements in supply chain management, digitalization, and automation, allowing capacity expansion and accelerated speed to market. Transformers are vital to the clean energy transition and enable the efficient transmission and distribution of electricity. They are a key element in integrating renewables, expanding grid interconnections, powering data centers, electrifying transportation, and facilitating the decarbonization of energy systems. Transformer insulation and components, such as bushings, tap-changers, insulation material and parts, and other accessories, are essential to the seamless operation of transformers. As the world's largest transformer manufacturer, Hitachi Energy has over 60 transformer factories and 30 service centers worldwide, providing the world's broadest portfolio of transformer insulation and components. Today's investment builds on the $6 billion USD announced in 2024, including $1.5 billion USD specifically allocated to scaling global transformer production. This expansion is essential to meeting growing demand and supporting long-term decarbonization and electrification efforts. All announced capacity investments include sustainable and state-of-the-art manufacturing technologies for operational efficiency while ensuring high standards of safety and quality. They are advancing the company's efforts to become carbon-neutral in its own operations by 2030 and aim to create positive economic and social impacts in local communities wherever the company works. About Hitachi Energy: Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world's energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today's generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 60 countries and generate business volumes of around $13 billion USD. About Hitachi, Ltd. Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of 'Digital Systems & Services' – supporting our customers' digital transformation; 'Green Energy & Mobility' – contributing to a decarbonized society through energy and railway systems, and 'Connective Industries' – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide.
Zawya
12-03-2025
- Automotive
- Zawya
Hitachi Energy invests additional $250mln to address global transformer shortage
The U.S. investment includes hiring more than 100 people to expand domestic key component manufacturing to strengthen local supply chain Builds on the $6 billion USD investment announced in 2024 – the largest in the industry in recent years to respond to the urgent need to upgrade power grids Dubai, UAE – Hitachi Energy announced today at CERAWeek additional major investments of more than $250 million USD by 2027 to expand global production of critical components for transformers. This rapid follow-up to the recently announced $6 billion USD investment across the company portfolio reflects the escalating transformer shortage, which continues to increase. As the electrification of industries, particularly data centers and AI, drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections. To keep pace with this accelerating demand, Hitachi Energy is expanding its commitment to scale up production and strengthen supply chains in the U.S. and worldwide. These investments bolster Hitachi Energy's manufacturing capabilities across the U.S., enhancing production capacity at the company's transformer factories in Virginia, Missouri, and Mississippi. It includes transformer components such as bushings and insulation as Hitachi Energy is a critical supplier to other transformer manufacturers. This pivotal move will also help alleviate the broader, ongoing transformer supply shortage, ensuring increased production capacity and supply-chain resilience. The global investment program, one of the most significant in the industry today, also strengthens Hitachi Energy's manufacturing capabilities in Asia, South America, and Europe. 'The demand for transformers and grid infrastructure is rising at an unprecedented scale and pace,' said Andreas Schierenbeck, CEO of Hitachi Energy. 'As the world's largest transformer manufacturer, we have a responsibility to expand our capacity and accelerate the delivery of transformers and essential components, helping the industry scale up faster and advance critical infrastructure projects.' Transformer investments are part of a broader, multi-billion-dollar investment plan that Hitachi Energy is deploying across its manufacturing, engineering, digital, R&D, and partnership activities. These investments are being rolled out across all major markets globally to enable the company to meet customers' commitments and market demand. Hitachi Energy is also delivering enhancements in supply chain management, digitalization, and automation, allowing capacity expansion and accelerated speed to market. Transformers are vital to the clean energy transition and enable the efficient transmission and distribution of electricity. They are a key element in integrating renewables, expanding grid interconnections, powering data centers, electrifying transportation, and facilitating the decarbonization of energy systems. Transformer insulation and components, such as bushings, tap-changers, insulation material and parts, and other accessories, are essential to the seamless operation of transformers. As the world's largest transformer manufacturer, Hitachi Energy has over 60 transformer factories and 30 service centers worldwide, providing the world's broadest portfolio of transformer insulation and components. Today's investment builds on the $6 billion USD announced in 2024, including $1.5 billion USD specifically allocated to scaling global transformer production. This expansion is essential to meeting growing demand and supporting long-term decarbonization and electrification efforts. All announced capacity investments include sustainable and state-of-the-art manufacturing technologies for operational efficiency while ensuring high standards of safety and quality. They are advancing the company's efforts to become carbon-neutral in its own operations by 2030 and aim to create positive economic and social impacts in local communities wherever the company works. About Hitachi Energy Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world's energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today's generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 60 countries and generate business volumes of around $13 billion USD. About Hitachi, Ltd. Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of 'Digital Systems & Services' – supporting our customers' digital transformation; 'Green Energy & Mobility' – contributing to a decarbonized society through energy and railway systems, and 'Connective Industries' – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at Media Contact: Media Relations Hitachi Energy
Euronews
10-02-2025
- Business
- Euronews
Europe has 500GW of renewable energy capacity but why isn't it connected?
Europe urgently needs to ramp up investment in its power grids to meet soaring energy demands and achieve climate goals, Hitachi Energy CEO Andreas Schierenbeck has warned. Speaking on The Big Question with Euronews' Angela Barnes, Schierenbeck outlined the pressing need for infrastructure expansion, emphasising that outdated regulations and slow permitting processes are hindering progress. 'We suddenly find ourselves in a situation where we need much more electrical energy than we thought,' Schierenbeck said. 'Since we got into this situation a little unprepared… now we're struggling to fulfill the needs. We need to add more generation assets…we need to add more grid. There's a gap.' 500 GW of renewable energy stalled due to grid limitations One of the most striking challenges, according to Schierenbeck, is that over 500 gigawatts (GW) of renewable energy capacity in Europe is ready to connect but remains idle because the grid infrastructure is not in place. To put it in perspective, 500 GW is enough energy to power 50 billion LED light bulbs or to charge around 45 million standard EVs. This bottleneck threatens Europe's ability to transition to cleaner energy sources and meet the Paris Agreement targets by 2030. Schierenbeck likened the energy shift to the rise of the internet in the 1990s, stating that governments and businesses must move faster to build the necessary infrastructure. Regulations designed to prevent overspending holding back progress A key obstacle, he explained, is that current regulations were designed to prevent unnecessary public spending rather than to enable rapid grid expansion. While this approach made sense in the past, it is now preventing the energy sector from adapting to urgent demand shifts. Schierenbeck revealed that while grid expansion projects typically take seven to eight years, only two to three years are spent on construction—the remaining time is lost in lengthy permitting and approval processes. 'Regulations were built to save taxpayers money, not to over-invest,' Schierenbeck said. 'But now we need to change. The cost of not doing anything or not being fast enough is higher than the cost of investing now.' The need for unprecedented collaboration To overcome these hurdles, Schierenbeck called for greater collaboration between governments, businesses, and regulators. He stressed that policymakers must recognise the urgency of the situation and work alongside industry leaders to fast-track investments and remove bureaucratic obstacles. Schierenbeck cited an example from his past experience in Germany, where a high-pressure gas pipeline initially projected to take five to seven years was ultimately built in just nine months due to regulatory flexibility. 'So you see the potential of what we have if you're doing the right things.' At Hitachi Energy, the company is actively working to expand production capacity, develop new grid technologies, and foster partnerships that can accelerate the transition. Last year, it announced an investment of more than €30 million (approx. $32m) in the expansion and modernisation of its power transformer manufacturing facility in Bad Honnef, Germany. Expected to be completed in 2026, the project will generate up to 100 new jobs in the region and address the rising demand for transformers to support Europe's clean energy transition. This year, it also announced plans to expand and increase the workforce in its composite component factory in Piteå, Sweden. 'This investment addresses the growing demand for power transmission equipment worldwide, driven by the energy transition,' a company statement said on its website. What Happens If Europe Fails to Act? If Europe delays critical investments in grids and renewables, the consequences could be severe, jeopardising energy security, economic stability, and climate commitments. However, Schierenbeck remains cautiously optimistic, believing that innovation and regulatory reforms can still enable the energy transition, if the right steps are taken now. 'We will adapt, we will find solutions,' he said. As the global energy landscape undergoes rapid transformation, Europe's ability to modernise its power grid will determine whether it can lead the clean energy revolution, or fall behind in the race for a sustainable future. Watch the video above for the full conversation with CEO of Hitachi Energy, Andreas Schierenbeck.
