Barak Orbach (U Arizona) and Eli Orbach (Phillips Exeter Academy) have posted “The US Is Not Prepared for the AI Electricity Demand Shock” on SSRN. Here is the abstract:
The United States power grid is increasingly strained by the surging electricity demand driven by the AI boom. Efforts to modernize the power infrastructure are unlikely to keep pace with the rising demand in the coming years. We explore why competition in AI markets may create an electricity demand shock, examine the associated social costs, and offer several policy recommendations.