NASHVILLE, TENN. (RFD NEWS) — A new assessment is highlighting increased risks of electricity shortages in the United States, as demand for power continues to rise. Growth in data centers and the expanding digital economy are placing additional strain on the grid, prompting questions about potential impacts on rural power systems.
Jim Matheson, CEO of the National Rural Electric Cooperative Association (NRECA), joined us on Wednesday’s Market Day Report to discuss findings from the latest Long-Term Reliability Assessment.
In his interview with RFD NEWS, Matheson outlined key highlights from the report, including growing concerns about whether electricity supply can keep pace with demand in the coming years. The assessment points to several factors driving the situation, including the rapid expansion of data centers, increased electrification across sectors, and shifting resources in energy generation.
“No question: data centers and artificial intelligence use a lot of power,” Matheson said. “There are other factors driving electric demand as well, including a growing economy. But a lot of people are now using artificial intelligence for search functions, and that uses far more electricity than the traditional search engines did. If the United States wants to compete globally in the new world of artificial intelligence, we need to have the power infrastructure to support those data centers. Some have even said it’s a race between the United States and China. If we want to win that race, we have to make sure the power is there.”
Matheson also discussed what these developments could mean for rural communities that rely on electric cooperatives for reliable, affordable power, and what steps may be needed to strengthen grid reliability moving forward.
“It’s interesting because rural electric co-ops serve more than half the landmass in this country, [and] many of these data centers are looking to locate in rural areas,” he explained. “What we want to make sure of is that they pay their fair share. Existing consumers shouldn’t see their electricity rates go up because of these new large loads coming onto the system. If we negotiate the right deals, this could be a win-win for rural America and for the data centers. But the devil is always in the details, and we need to make sure we protect the consumers we serve.”
He was also in Nashville this week for the association’s annual NRECA PowerXchange meeting, where cooperative leaders gathered to discuss the future of rural power and the challenges facing the electric grid. Finally, Matheson recaps their PowerXchange event, shares his biggest takeaways from the discussions, and explains how those conversations could shape the path forward for the nation’s electric cooperatives.
