Recently, Andreas Schierenbeck, CEO of Hitachi Energy, the world's largest transformer manufacturer, pointed out in an interview with the Financial Times that as large technology companies increase their power demand when training artificial intelligence models, governments need to take measures to limit this volatility to ensure the stability of the power supply.
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Schierenbeck said that the power demand fluctuations of AI data centers are extremely severe, which is completely different from traditional office data centers. He explained that when AI algorithms start processing data, the power demand may surge within a few seconds, reaching ten times the usual level. He emphasized that no other industry would be allowed to use electricity so unstably, like smelters, which must notify the power company before starting. He called on the government to implement similar rules for data centers to ensure the reasonable use of electricity.
The main concern about the surge in power demand of AI data centers lies in their impact on the power grid. The International Energy Agency predicts that by 2030, the power consumption of data centers will double, reaching 945 terawatt-hours, a figure that exceeds the entire current power usage of Japan. Due to concerns about the impact on the power network, countries such as Ireland and the Netherlands have already restricted the development of new data centers.
At the same time, analysts point out that although AI has a high power demand, if tech companies set a maximum power limit and schedule training work when renewable energy is abundant, AI's power demand could actually help stabilize the grid. Hitachi Energy, established in 2020 after being acquired by ABB Power Grids, is currently facing a global transformer shortage. Schierenbeck estimates that this shortage may take three years to ease, and Hitachi Energy's current order backlog is $43 billion, a significant increase from $14 billion three years ago.
He also mentioned that the shortage of specialized contractors required to manufacture transformers weighing hundreds of tons has slowed factory expansion, thus limiting the industry's ability to keep up with demand more quickly. To meet orders from power companies and grid infrastructure providers, Hitachi Energy plans to invest $6 billion by 2027 to increase production capacity and hire 15,000 employees. Schierenbeck expects that these positions will be easy to fill, especially in Europe, as engineers from the automotive and chemical industries are laid off.
Key points:
⚡️ The power demand fluctuations of AI centers of big tech companies are serious, and Schierenbeck calls on the government to take measures to limit them.
🌍 The power consumption of data centers is expected to double by 2030, affecting the stability of the power grid.
🏭 Hitachi Energy plans to invest $6 billion to increase production capacity, easing the global transformer shortage.
