America's power crisis: the hidden cost of AI dominance | Energy Gang

America needs to build the equivalent of 15 New York Cities worth of power infrastructure in just four years and it’s not close to ready. Recorded live at the ACORE Policy Forum in Washington DC, this episode explores how explosive AI-driven electricity demand is colliding with an aging US grid. Wood Mackenzie’s Anna Shpitsberg reveals 183 GW of high-confidence data centre load already locked in (22% of 2025 peak demand), rising to ~220 GW with advanced projects. Meanwhile, 39 states saw ~6% electricity rate increases in 2025 and the US is now among the most expensive places to build power infrastructure. The math is stark: thermal ramp-ups could add 47 GW, new gas builds ~49 GW, but retirements remove 60 GW, leaving a huge gap for renewables and storage. PJM’s capacity crunch shows the timing problem: far more load signed on than reliable capacity available. With “five nines” reliability required, data centers can’t simply go off-grid. And in 2024, China outbuilt the US 3-to-1, adding capacity equal to 40% of America’s entire power system in a single year. WHAT YOU’LL LEARN - Why ~166 GW must come online by 2030 to avoid shortages - How gas plant costs reached ~$2,500/kW amid 20–100% equipment inflation - Why PJM’s capacity price caps worsened supply shortages - How tariffs on steel, copper and alloys ripple through every project - Why AI demand is becoming a bipartisan national security priority - China’s strategy: rapid solar buildout as the fastest, cheapest option TIMESTAMPS 00:00 Policy as the key barrier 00:50 183 GW of data centre load already locked in 02:35 Supply outlook: gas, thermal ramp-ups and retirements 04:26 PJM’s capacity crisis explained 07:52 Supply chain cost pressures and tariffs 11:09 “Five nines” reliability for data centres 20:03 Building 15 New York Cities of power in 4 years 32:39 Why energy technologies shouldn’t be politicised 40:01 Policy bottlenecks: tariffs, permits, agencies KEY INSIGHTS - Data centres alone could add load equal to 22% of 2025 peak demand, even before additional projects in development. - China’s infrastructure advantage is accelerating: far faster transmission and generation buildouts than the US. - Price caps can unintentionally suppress supply, threatening reliability. - Inadequate power infrastructure risks suppressing US economic growth in AI, manufacturing and electrification. - AI’s national security importance is driving rare bipartisan alignment on scaling energy infrastructure. RESOURCES Listen on other platforms: Apple Podcasts: https://podcasts.apple.com/gb/podcast... Spotify: https://open.spotify.com/show/0GT5BuD... Overcast: https://overcast.fm/login Full episode page: https://www.woodmac.com/podcasts/energy-gang/data-centers-are-adding-an-extra-220-gigawatts-of-electricity-demand-in-us/ More Wood Mackenzie energy analysis: https://www.woodmac.com Follow Energy Gang: X: @TheEnergyGang ABOUT THIS EPISODE Live from the ACORE Policy Forum in Washington DC, this episode examines how the US can meet surging AI and data center demand while managing cost inflation, supply chain constraints and permitting delays. The discussion covers tariff impacts, grid reliability, emerging bipartisan consensus and why policy, not technology or capital, may be the biggest constraint. GUESTS Anna Shpitsberg, Global Head of P&R Research, Wood Mackenzie LinkedIn: https://www.linkedin.com/in/shpitsberg Arthur Haubenstock, Senior Counsel, Equinix LinkedIn: https://www.linkedin.com/in/arthur-haubenstock-24607838/ Ray Long, President and CEO of ACORE LinkedIn: https://www.linkedin.com/in/ray-long-a89a816/ HOST Ed Crooks: Host, Energy Gang LinkedIn: https://www.linkedin.com/in/edcrooks/ JOIN THE CONVERSATION Should utilities be allowed to cap capacity auction prices if it means risking blackouts? The PJM debate highlights the fundamental tension between affordability and reliability, share your take in the comments. This episode is brought to you by ACORE, the nonpartisan nonprofit organization uniquely operating at the intersection of energy affordability, reliability, and clean energy deployment. ACORE is focused on strengthening the electric grid and driving clean energy investment that delivers for the American people.    Visit www.acore.org to learn more about ACORE's work and upcoming events, like the ACORE Finance Forum on May 12-13 in New York City.