Axios event: Strengthening electrical grids amid AI growth draws bipartisan support

WASHINGTON – There's work to be done to meet the moment when it comes to keeping up with U.S. energy needs, two lawmakers from opposing parties agree.

Why it matters: The energy industry and policymakers are working to ensure electrical grids are equipped to fulfill growing demand.

• This is especially true as the use of artificial intelligence intensifies, and its data centers place more strain on already outdated infrastructure.

Axios' Andrew Freedman and Daniel Moore spoke with Sen. Tina Smith (D-Minn.) and Rep. Bob Latta (R-Ohio) at a Feb. 26 event sponsored by the National Electrical Manufacturers Association.

The big picture: Smith stressed the importance of federal regulatory reform, saying the processes leading up to the construction of energy projects have become bogged down.

• "I think that our regulatory frameworks are not really catching up with this as quickly as they should," Smith said.
• "We've known for years now that if we can't speed up the way that we are updating and modernizing the grid, we will never be able to meet our energy demand goals."

Latta doubled down on the need to speed up government processes that support U.S. energy goals. Permitting will be a big legislative priority this year, he said.

• "[W]hen we see projects that might languish out there for seven, eight, nine years, we just can't have that continue," Latta said.

What they're saying: "As I think about climate and energy and what we want to accomplish in the next two years, I mean let's just be honest, we're dealing with an administration that is pretty clearly overtly hostile to clean energy," Smith said.

• "My strong belief is that the clean energy transition is a transformation that is going to happen, we're in the midst of it. The only question is whether the United States is leading that transition or whether it's following, and I think that we should lead," Smith said.

Sponsored content:

In a View From the Top sponsored segment, Debra Phillips, president and CEO of the National Electrical Manufacturers Association, shared data from an upcoming study showing expected electricity demand growth.

• "Our forecast is in the moderate range, we're seeing 2% a year growth," Phillips said. "So by the time we get to 2050, 50% growth over where we are today. In large part, data centers over the next decade are going to be the key driver."