Despite increasing power demand and costs, ARK Invest predicts that the growth and profitability of AI data centers will remain strong. The firm suggests that AI companies can partially operate off-grid through independent power generation, with examples like Tesla and SpaceX CEO Elon Musk using generators to power xAI’s data center in Memphis, Tennessee.
Heavy rains across India have brought relief from scorching temperatures and eased power demand, but concerns remain about potential floods and the long-term impact on water reservoirs. While the monsoon has brought respite from the heatwave, it has also led to widespread flooding in some areas. Despite the easing of power demand, experts are cautious about the impact on agriculture and other sectors, emphasizing the importance of continued rainfall for the rest of the monsoon season.
India’s power ministry is likely to revise its peak electricity demand projections upwards after a record-breaking heatwave pushed demand to unprecedented levels. The ministry acknowledges that the current projection of 384 GW by 2031-32 might be an underestimate and could even reach 400 GW. To meet this increased demand, India’s power generation capacity will need to be significantly boosted, with a focus on both thermal and renewable energy sources.
India’s electricity demand reached an unprecedented high of 250 gigawatts (GW) on Thursday, marking a second consecutive day of record-breaking consumption. The surge in demand is attributed to the intense heatwave conditions gripping northern India, leading to increased reliance on cooling appliances.
This record demand has outpaced the previous high of 246 GW recorded on Wednesday and 243 GW in September 2023. The northern region recorded an all-time high demand of 86.7 GW, while the western region reached 74.8 GW. Thermal power plants played a crucial role in meeting this demand, achieving a peak generation of 176 GW.
The ongoing heatwave is expected to persist into June, potentially pushing peak demand to 260 GW. To meet this anticipated demand, the government has directed imported coal-based plants to operate at full capacity till September 2024 and extended the mandate for blending 6% imported coal in domestic coal-based plants till June.
Delhi’s power demand has reached unprecedented levels during the ongoing heatwave, with the peak demand touching 7,717 MW on Tuesday afternoon. This marks a new all-time high for the national capital, surpassing previous records set in 2022. The soaring demand has primarily been attributed to extreme weather conditions, leading to a surge in the use of air conditioning appliances. This heatwave is expected to continue until Saturday, with the maximum temperature forecast to reach 46°C by next week. Authorities are closely monitoring the situation and assuring citizens of uninterrupted power supply despite the challenging conditions.
The surge in data center construction driven by the rapid development of artificial intelligence (AI) technology is poised to significantly increase the demand and prices of natural gas in the United States. According to investment bank Tudor, Pickering, Holt & Co., the soaring electricity consumption by data centers will require an additional 8.5 billion cubic feet per day (Bcf/d) of natural gas by 2030, pushing up prices to an average of $4 per million British thermal units (MMBtu). This development could challenge the Biden Administration’s ambitious target of transitioning to a carbon-free electricity grid by 2035.
Despite global economic challenges, the recent increase in power demand has revived interest in coal stocks. Warrior Met Coal (HCC), CONSOL Energy (CEIX), and Ramaco Resources (METC) are among the companies to consider for investment. HCC has strong financial performance, while CEIX offers high-risk potential. METC presents volatility but has significant growth prospects.
