How AI is Revolutionizing the Energy Landscape

The global surge in Artificial Intelligence (AI) applications is reshaping industries while simultaneously putting immense pressure on the global energy infrastructure. Data centers are the backbone of AI technology and are responsible for a substantial part of this demand, straining the U.S. power grid like never before. To put it simply, as AI applications grow, so does the need for processing power, particularly for Large Language Models (LLMs). Herein lies the challenge for major tech companies like Amazon, Google, Microsoft and Meta, who are in constant need for more power in their pursuit of AI’s continuous development. With global data centres yet to cope with these demands, these tech companies have turned to powering their data centers with renewable energy. However, this will be inadequate to meet the electricity load required by AI’s energy appetite, which consumed 460 terawatt hours (TWh) of global electricity in 2022 and is predicted to use more than 1,000 TWh in 2026, according to the International Energy Agency (IEA) 2024 report.

How is the energy industry coping?

With the mounting pressure to meet the skyrocketing energy demand, several power companies like General Electric, NDDP, Entergy and more have increased their capital expenditure (CapEx) to build power stations to meet this demand. According to Wells Fargo, AI data centres alone are predicted to add approximately 322 TWh of electricity demand in the U.S by 2030. For comparison, this is equal to seven times the annual energy consumption of New York City.

To address this challenge, forward-thinking energy providers like Dominion Energy are diversifying their portfolios. They have made investments in renewable energy sources such as offshore wind farms, solar energy, and emerging technologies like battery storage and gas generation. The power company is also working on adding its natural gas capacity with gas turbines to fill the energy gaps when production drops from renewable resources. EQT Corporation has also been moving fast on the electricity demand surge by recently purchasing the Mountain Valley Pipeline owner, which connects abundant natural gas reserves that EQT is developing in the Appalachian Basin to southern Virginia. With energy corporations like EQT and Dominion Energy leading the charge, Dokainish is poised to play a pivotal role in supporting this energy transformation within the industry.

Our Role in the Transformation

Dokainish is an enabler of innovation, actively supporting and driving technological advancements in the energy sector. With expertise in project controls and a keen focus on CapEx optimization, we are supporting groundbreaking projects such as the development of fusion and Small Modular Reactors (SMRs). States like Virginia are collaborating with data centre companies to assess the potential of SMRs to serve the rise of electricity needs. Dokainish has been working with some of the largest nuclear energy corporations by managing projects to deploy SMRs. We also understand the importance of optimizing data centres in terms of improving energy efficiency, eco-friendly enhancements, HVAC management and infrastructure efficiency.

It is increasingly imperative for energy corporations to begin integrating enough green energy into their portfolios to satisfy the emerging requirements from AI and to comply with stringent carbon emission regulations. Dokainish brings a wealth of similar experience to the table, having established and fine-tuned an asset management system valued at over $50 billion in energy assets for a leading green power generation company. We provide the energy industry with strategy, project controls, and systems implementation required to meet the demands of AI’s energy appetite.

Partner with us as you grow to meet energy demands of tomorrow.

About Dokainish & Company

The capital project landscape is impacted with billions of dollars lost from cost overruns. Dokainish & Company stands out with a track record of building award-winning PMOs and lowering cost overages up to 200% on projects in energy, infrastructure, mining, construction, defense, and more. We are the category leaders in project controls and technology consulting. We are ISO 9001:2015 certified, minority owned, and maintain a 97% rate of client retention. We provide integrated project controls, project management, and change management services. Learn more at dokainish.com and follow @Dokainish&Company.