You have read about the growing demand from data centers for power. States across America are hosting new data centers with chips using massive amounts of power to fuel the AI boom. The question is, can the grid keep up with new demand? A new paper from Wood Mackenzie suggests the answer is no for the moment. A big risk is the capacity for gas turbines. According to a report by Wood Mackenzie’s David Brown, there isn’t enough. Brown writes:
- Gas turbine orders surged 32% year-on-year in 2024, driven by anticipated load growth from electrification, AI and hydrogen production.
- Manufacturing constraints could limit near-term growth, with current capacity utilisation around 90% and delivery timelines subject to delays.
- Rising capital costs and power market prices below the cost of new gas generation pose challenges, particularly in the US.
America needs more power, and the Trump administration is working hard to smooth the way for new development of power resources across the board. Reuters reports that the administration is cutting approval time for energy projects to 28 days, down from months or even years.
The Trump administration on Wednesday said it would implement an emergency permitting process for energy and mining projects on federal lands, slashing approval times that typically take months or years to at most 28 days.
The U.S. Department of the Interior move is in response to President Donald Trump’s national energy emergency declaration, which he made on his first day in office to speed permitting in an effort to boost domestic energy supplies, bring down fuel prices and bolster national security.
Interior Secretary Doug Burgum said in a statement “The United States cannot afford to wait. President Trump has made it clear that our energy security is national security, and these emergency procedures reflect our unwavering commitment to protecting both. We are cutting through unnecessary delays to fast-track the development of American energy and critical minerals—resources that are essential to our economy, our military readiness, and our global competitiveness. By reducing a multi-year permitting process down to just 28 days, the Department will lead with urgency, resolve, and a clear focus on strengthening the nation’s energy independence.”
The new procedures will apply to energy sources and other resources including:
- Crude oil
- Natural gas
- Lease condensates
- Natural gas liquids
- Refined petroleum products
- Uranium
- Coal
- Biofuels
- Geothermal energy
- Kinetic hydropower
- Critical minerals
Action Line: Read more about America’s data center growth and the demand for power below. Click here to subscribe to my free monthly Survive & Thrive letter.
- How Will America Fill Its Data Center Power Gap?
- Data Centers Ramping Up Power Demand
- Will AI Data Centers Threaten National Security?
- AI Data Centers Could Consume 25% of U.S. Power
- Texas Attracts Data Centers with Cheap Power and Land
- Can Data Heat Your Home for Free?
- Amazon’s Nuclear Powered Data Center
