Clean tech, AI boom straining US energy supply
The Marathon Digital CEO discusses the cryptocurrency market and mining practices in a FOX Business exclusive interview.
The artificial intelligence (AI) boom, increased clean technology manufacturing and cryptocurrency mining are straining U.S. energy supplies as energy sources struggle to keep pace with rising demand.
Rising industrial demand from tech companies — which are operating data centers and training AI models — electric vehicles, manufacturers and emerging technologies like cryptocurrency has created a large uptick in demand for energy generation. The retirement of fossil fuel and nuclear power plants as the demand for electricity rises is placing increased strain on the nation's energy supply.
The North American Electric Reliability Corporation (NERC), a not-for-profit regulator that looks to ensure reliable and efficient energy access in the U.S., Canada and part of the Baja region of Mexico, produces reports on the adequacy of the energy supply for the summer and winter seasons as well as long-term reliability assessments.
NERC's most recent long-term reliability assessment conducted in 2023 found that there were large, upward-demand shifts for energy in the winters of 2020 to 2023. It also projected that demand in the summer of 2024 would reach its highest level since 2016 and that winter demand would hit its highest level since at least 2015.
RECORD-BREAKING TEMPERATURES IN US SKYROCKET MONTHLY SPENDING
The electric grid is facing growing demand from tech companies for training AI models and for cloud data centers, increased use of EVs, retirement of fossil fuel power plants and crypto mining. (Patrick T. Fallon / AFP / Getty Images)
The report also flagged several risks to reliable energy supplies in
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