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The U.S. power grid faces a critical shortage as AI demand surges, nuclear executive warns. The nation’s electrical infrastructure is rapidly approaching a breaking point due to the explosive growth of artificial intelligence computing demands, according to Jacob DeWitte, CEO of California-based advanced nuclear company OKLO.
DeWitte recently joined Meta executive Joel Kaplan and Energy Secretary Chris Wright in Washington to announce a major new partnership aimed at addressing this looming crisis. OKLO plans to develop a 1.2 gigawatt nuclear installation in Pike County, Ohio, part of a larger effort to revitalize what DeWitte described as a former “industrial cathedral” for the digital and AI age.
“We are going to run out of power capacity in this country in the next several years, especially in critical industrial markets like the Midwest and Northeast,” DeWitte warned. “The PJM interconnection [which supports the Mid-Atlantic region] is going to be undersupplied with power generation in just a matter of a few years.”
The partnership with Meta represents a significant step toward alleviating this shortage. Meta has committed to developing 6.6 gigawatts of new power capacity, which DeWitte characterized as a “huge amount” designed to meet needs for decades to come.
OKLO’s approach differs from traditional utility models. The company focuses on helping large energy users add grid power through private investment rather than conventional utility channels. DeWitte emphasized that smaller nuclear plants can be constructed and brought online more quickly than large conventional facilities, shortening the learning curve and reducing both the time and financial costs of technological progress.
According to DeWitte, one of the primary obstacles to expanding energy capacity has been the regulatory environment, which he described as “fundamentally anti-energy” for many years. “The unfortunate thing is we have to undo decades of damage [from] not doing things to then overcome that inertia,” he said.
He noted that states experiencing the worst energy problems tend to be those with the “heaviest-handed anti-energy policies,” though he expressed encouragement that many of these states are now responding to the challenges.
The power crunch is particularly acute in light of the rapid development of artificial intelligence, which requires enormous amounts of electricity for data centers. While data centers have faced NIMBY (not in my backyard) opposition in some communities due to concerns about strain on local infrastructure, DeWitte countered that this represents a “scarcity mindset” rather than the “abundance mindset” that should guide energy planning.
OKLO was founded on the belief that nuclear fission can provide massive amounts of reliable, affordable energy. DeWitte pointed out that nuclear power has some of the lowest fuel costs per megawatt-hour of any energy source, making it particularly well-suited to meet the high-demand, constant power needs of AI facilities.
When asked whether the U.S. energy challenges stem from regulatory or market failures, DeWitte placed the blame squarely on excessive regulation rather than market dynamics. “We, as a country, decided that we didn’t need to build new power capacity and instead masked the challenges it imposes on industrial and economic growth by shipping jobs and production overseas,” he explained.
This offshoring merely shifted the energy burden to other countries, which built power plants to support manufacturing. “We need to bring that capability-set of manufacturing back to the country, but we need the energy to do it, and we don’t have it today,” DeWitte concluded.
The race to expand energy capacity comes as the United States competes globally in AI development, with energy availability emerging as a critical factor in determining which nations will lead in this transformative technology. Without sufficient power infrastructure, America risks falling behind in both AI advancement and the manufacturing renaissance that the Trump administration aims to foster.
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16 Comments
The warning from Oklo’s CEO about a potential power crunch in the next few years is concerning. Nuclear power could play an important role in addressing these capacity issues.
I agree, next-generation nuclear like Oklo’s plans could help shore up the grid and provide reliable, carbon-free power to support the AI and digital economy.
This is a crucial issue for the future of the US economy and competitiveness. I hope the partnership with Meta and the new nuclear plant in Ohio can help address these looming grid challenges.
Me too. Reliable, affordable electricity is the backbone of the digital economy, so getting the power grid modernized and expanded is absolutely vital.
The warning about the PJM interconnection being undersupplied is a real wakeup call. Policymakers and industry need to act quickly to avoid potential blackouts and power shortages.
Absolutely. Proactive steps to upgrade the grid, develop new power sources, and ensure sufficient capacity will be essential to maintain reliable electricity for businesses and households.
As an investor, I’ll be watching developments in the US power sector closely. Opportunities to support grid upgrades and new generation capacity could be very attractive.
Good point. Innovative energy projects and grid infrastructure investments could present some compelling investment prospects in the years ahead.
Interesting to see the power grid challenges posed by the surging AI computing demands. Upgrading the grid infrastructure seems crucial to meet future energy needs.
Absolutely, the nation’s power grid needs significant new investment to keep up with the exponential growth in AI computing. This partnership with Meta is a step in the right direction.
The CEO’s warning about the PJM interconnection being undersupplied in just a few years is worrying. Proactive investment in the grid and new power sources is clearly needed to avert a crisis.
I share your concern. The rapid growth of AI is putting significant new strains on the electrical system, and bold action is required to upgrade and expand the nation’s power infrastructure.
This article highlights the critical need to modernize and expand the US power infrastructure to meet the surging electricity demands of the digital age. Innovative energy solutions will be key.
Absolutely. Upgrading the grid and developing new power capacity, whether through nuclear, renewables or other means, will be essential to avoid potential blackouts and shortages.
It’s good to see the government and private sector coming together to address these critical energy challenges. Public-private partnerships could play a key role in upgrading the US power grid.
Agreed. Collaborative efforts between government, industry, and innovative energy companies will be crucial to modernizing the nation’s electrical infrastructure and ensuring future energy security.