Apac Data Centre Growth Strains Regional Power Grids

The growing demand for electricity driven by data centers, electrification, and manufacturing is straining power grids across the Asia Pacific and the U.S. mid-Atlantic region, leading to rising electricity prices and grid reliability concerns. In Asia Pacific, data centers alone consumed around 415 TWh last year, with AI adoption expected to increase this by 160 percent, while semiconductor electricity use is also projected to grow significantly, putting pressure on aging infrastructure in countries like Singapore and Australia. In the U.S., PJM, which manages the power grid for 13 mid-Atlantic states, highlights that plant retirements due to decarbonization policies and economic pressures are reducing supply just as demand surges, causing price increases. To address supply shortfalls during peak demand, the U.S. Department of Energy issued an emergency order to keep a Pennsylvania power plant operational past its scheduled retirement. Meanwhile, Virginia faces challenges balancing its energy transition goals under the Virginia Clean Economy Act with the need for grid reliability and affordability, with state leaders considering revisiting the law amid rising costs and infrastructure fragility. These developments underscore the complex trade-offs between decarbonization, energy reliability, and cost amid rapid electrification and industrial growth.