Podcast Summary: Energy Gang – "Data Centers are adding an extra 220 gigawatts of electricity demand in the US. How can the grid cope?"

Date: February 27, 2026
From the ACORE Policy Forum, Washington, DC
Host: Ed Crooks (Wood Mackenzie)
Featured Guests: Anna Spitzberg (Wood Mackenzie), Arthur Haubenstock (Equinix), Ray Long (ACORE), Kimberly Johnston (NextGen Energy), Saxon Metzger (Polaris Ecosystems), Ebony Seymour (Element Group)

Episode Overview

This special episode, recorded live at the ACORE Policy Forum in Washington DC, dives deep into one of the most urgent challenges facing US energy: explosive electricity demand growth from AI and data centers, with projections of an additional 220 gigawatts needed. Host Ed Crooks and a range of expert guests discuss the scale and implications of this demand, grid reliability, affordability, supply chain and workforce constraints, policy barriers, and the need for government and industry to accelerate solutions for a resilient, secure, and affordable clean energy transition.

Key Discussion Points & Insights

1. Scale of Data Center-Induced Power Demand

Guest: Anna Spitzberg (Wood Mackenzie)

• Explosion in Demand:

  • Current projects with financial commitments and service agreements will add 183 GW of peak demand by 2025—about 22% of US peak demand. Including advanced-stage discussions, this rises to 220 GW.
    • “If we look at what has construction agreements…we hit 183 gigawatts. That accounts for about 22% of peak demand in the US in 2025.” (01:00, Anna Spitzberg)
    • “If you add advanced discussions…you're at 220 gigawatts.” (01:38, Anna Spitzberg)

• Supply Uncertainty:

  • Load realization may be impacted by supply chains, policy, pricing, but utilities are planning around this high-confidence load.

2. How Will the Grid Meet Demand?

Guest: Anna Spitzberg

• Thermal Capacity Utilization

  • Some existing gas and coal can be ramped up for about 47 GW.
  • New gas build expected (potential ~49 GW), but significant retirements continue (~60 GW potential retirements impact supply).
  • Retaining older coal plants is costly and yields low reliable capacity.

• Gap for Renewables & Storage:

  • Even with increased thermal capacity, renewables and storage must be deployed to meet over 100 GW additional demand in the next five years.
  • Timing and permitting are critical bottlenecks.
  • “We do see room for renewables and storage to meet that gap. It’s all about timing.” (04:14, Anna Spitzberg)

• PJM Example:

  • Massive mismatch: 3x signed demand vs actionable, accredited supply, leading to shortages and crisis-level auctions.

3. Reliability vs. Affordability Tension

Guests: Anna Spitzberg, Ed Crooks

• Price Caps Lead to Shortages:

  • Capacity auction price caps (as in PJM) intended to keep costs down result in insufficient supply.
    • “If you cap a price in a market, you're going to get insufficient supply. That's exactly what happened [in PJM].” (05:56, Ed Crooks)

• Broader Capacity Shortfalls:

  • Aging infrastructure, fuel price increases, wildfires, T&D needs—all driving costs.
  • Equipment and material price inflation: Gas turbine CAPEX reaching $2,500/kW, electrical equipment up 20–100% year-on-year.
  • Tariffs often exacerbate costs across the supply chain.

4. The Role of Policy and Supply Chain Strategy

Guest: Anna Spitzberg

• Deploying Strategic Policy Tools:
  • Government incentives and investment can help de-risk and bring down project costs but must be deployed at scale and to the right parts of the system.
  • Tariffs, workforce shortages, slow permitting, and high costs make the US a challenging place to build grid and generation infrastructure.
  • “We’ve become one of the most expensive places to build power infrastructure… significantly more than China right now.” (08:05, Anna Spitzberg)

5. Data Centers’ Perspective: Reliability, Proximity, and Grid Dependence

Guest: Arthur Haubenstock (Equinix)

• Five-Nines Reliability:

  • Data centers provide critical services (911, banks, etc.)—downtime is unacceptable.
  • AI intensifies both the demand and the requirement for ultra-low-latency and proximity, particularly in regions like NYC.
  • "Every time you make a banking transaction on your phone…there's a pretty good chance that you're going through one of our data centers and you do not want that to go down." (11:37, Arthur Haubenstock)

• Limited Grid Flexibility:

  • Some remote data centers can rely more on on-site generation and flexibility, but urban/latency-sensitive sites have little leeway.

• Emergency Backup:

  • Backup generation and storage must only be for true emergencies—routine switching would compromise reliability.

6. Systemic Solutions, Federal-State Coordination, and Innovation

Guest: Arthur Haubenstock

• Need for "Cooperative Federalism":

  • Urges federal and state governments to unify on expediting permitting, transmission, and distributed storage.

• Bottlenecks and Innovations:

  • US has generation "distribution problem" akin to old debates on food vs. logistics—not just about adding capacity but unlocking grid congestion through advanced transmission and grid-enhancing technologies.

  • "We have actually plenty of food. We just have a real distribution problem…We have that problem today in energy." (17:50, Arthur Haubenstock)

• Positive Signs:

  • Administration is spending more on advanced transmission; distributed storage and localized solutions gaining traction.

7. Conference/Industry Key Takeaways & Macro Trends

Guest: Ray Long (ACORE)

• Unprecedented Demand:

  • 166 GW needed in next four years—equivalent to building 15 more New York Cities.
    • “It’s the equivalent of adding fifteen more New York Cities onto the grid.” (21:22, Ray Long)

• Barriers to Scaling:

  1. Permitting delays (currently 8–17 years for approval)
  2. Trade/tariff policy and supply chain constraints
  3. Agency bottlenecks (DOE, Department of Interior, DOD, etc.)

• Two Priorities:

  • Reliability and affordability are paramount.
  • Record price increases: 39 states saw >6% electricity price rises in 2025.

• Policy Volatility and Bipartisan Opportunity:

  • Recent years saw wild policy swings (on tariffs, tax credits, etc.).

  • But AI/data center demand is forging bipartisan consensus on the need to scale all types of energy supply.

  • "There is the basis for bipartisan consensus now on energy...essentially because of AI." (28:00, Ed Crooks)

• The China Comparison:

  • China has outbuilt the US 3:1 in transmission/generation in a year—building "everything" at scale, particularly solar + storage, and has achieved supply-demand equilibrium while planning for more.
  • US needs similar urgency and breadth in its response.

Important Segments & Timestamps

• Anna Spitzberg on New Data Center Load
  [00:59–04:27]

• Supply Capacity and Price Pressures
  [05:16–08:05]

• US as Cost Outlier, Supply Chain/Workforce Issues
  [08:05–10:35]

• Arthur Haubenstock on Data Center Reliability and Grid Dependence
  [11:13–15:23]

• Systemic Bottlenecks, Advanced Transmission
  [17:50–19:50]

• Ray Long on Demand and Policy Priorities
  [20:19–25:28]

• Bipartisan Consensus and Comparison with China
  [28:00–39:52]

• Policy Recommendations – What the Industry Needs
  [41:00–42:12]

Notable Quotes

• Ray Long:

  • “The only thing standing in the way to achieving the objectives that politicians as well as consumers want is policy.” (00:00)
  • “We need to build everything…If we do certain policies like balance the trade piece…if we take the boot off of the roadblocks in the agencies and if we streamline permitting reform, we’re there, we win.” (41:00)

• Anna Spitzberg:

  • “We’ve become one of the most expensive places to build power infrastructure…It takes longer to build infrastructure here…and it’s more expensive, significantly more than China right now.” (08:05)
  • “We do see room for renewables and storage to meet that gap. It’s all about timing.” (04:14)

• Arthur Haubenstock:

  • “Our claim to fame is five nines reliability. We do not go down.” (11:37)
  • "It’s been too difficult, it’s taken too long, it’s been too expensive, it’s been too easy for people to stop it. And that needs to change." (31:57)

• Ed Crooks:

  • "If you cap a price in a market, you're going to get insufficient supply. That's exactly what happened [in PJM]." (05:56)

Innovative Startups & Future Solutions

Featuring ACOR Accelerate Entrepreneurs ([42:12–51:24])

• Kimberly Johnston, NextGen Energy:

  • Commercializing distributed solar + storage to safeguard critical infrastructure amid aging grid and rising demand. Success hinges on local partnerships and policy support.
  • "We're trying to prevent loss of life, lower electricity costs, and really use these assets...so cities and communities have something they can monetize." (42:28)

• Saxon Metzger, Polaris Ecosystems:

  • Bridging investment and infrastructure gaps in tribal and rural areas with stakeholder engagement and better risk/certainty for developers.
  • "What we really need is for folks in the traditional development space to reach out to us if they're trying to work with tribal communities..." (46:35)

• Ebony Seymour, Element Group:

  • Addressing talent shortages in renewables via targeted recruitment and industry upskilling, aiming to bring new entrants and adjacent sector talent into clean energy.
  • "One of the things that I wanted to do is really highlight talent across the industry, but also help bring individuals from adjacent industries into the space." (48:41)

Conclusions and Core Messages

• The US power system faces a transformative decade: Data centers and AI are driving record demand growth, presenting both huge economic opportunity and reliability/affordability risks.
• Systemic policy, permitting, and grid improvements are critical—the private sector is ready to invest and build, but government action is needed to unlock and accelerate supply.
• Bipartisan consensus is building, driven by national priorities (AI, security, economic competitiveness), but real progress depends on tackling bottlenecks in permitting, investment certainty, tariffs, and transmission.
• US needs to adopt some of China’s scale and urgency to avoid shortages and price spikes—building “everything,” fast, and at scale.
• Next-gen entrepreneurs are poised to deliver granular, community-focused, and inclusive solutions, but their impact depends on policy support and market access.

For listeners: This episode provides a panoramic, highly relevant look at the greatest transformation and challenge facing the US energy industry in decades—offering both stark warnings and clear, actionable directions on how policy, innovation, and pragmatic bipartisanship can—and must—work together for a resilient, affordable, and decarbonized grid.