Energy Sector Challenges Rise as Electricity Prices Soar in US, Brazil Amid AI Boom and Subsidy Growth

Energy demand is rising globally, driven by sectors like AI data centers, which is prompting calls for faster electricity grid connections, as seen in the U.S. where Energy Secretary Chris Wright urged the Federal Energy Regulatory Commission to expedite grid access for large loads. Despite concerns about rising electricity costs, a U.S. study showed that many states have seen power prices decline when adjusted for inflation, though costs in some areas have increased due to disaster recovery and grid maintenance. The AI boom is also influencing the energy mix, with renewed interest in coal power enhanced by carbon capture and storage technology, as companies seek reliable, low-carbon power sources. In India, electricity demand is projected to surge by 4-4.5% in fiscal year 2026, supported by improved coal supplies at power plants. Conversely, in Brazil, escalating subsidies and regulatory charges are causing electricity bills to soar, disproportionately impacting average consumers despite policies aimed at expanding access and supporting low-income families. These developments underscore the complex and regionally varied challenges of meeting growing power needs while balancing affordability and sustainability.