Building the plane while it’s flying: data centers, utilities, and the new rules of power

About this episode

The episode discusses the challenges in the US power sector due to explosive growth in electricity demand driven by data centers and AI, and the implications for energy policy and finance.

After more than a decade of flat demand, the US power sector is now facing explosive growth, arriving faster than grids, generation, and transmission can be built. In this episode, Interim host of Interchange Recharged Bridget van Dorsten is joined by Chris Seiple, Vice Chairman of Power & Renewables at Wood Mackenzie, to unpack one of the defining challenges facing the modern energy system: how utilities, developers, and policymakers are responding to an unprecedented surge in electricity demand driven by data centres, AI, and reshoring manufacturing.  Bridget and Chris explore what makes this moment different, why planning cycles are colliding with short technology investment horizons, and how this mismatch is forcing a fundamental rethink of how the power business works, from energy policy to energy   finance. The main point is that the difference between regulated and deregulated markets is widening, as vertically integrated utilities strengthen their advantage in managing large loads. New mechanisms like large-load tariffs are reshaping rate design, investment risk, and affordability - Chris explains how. Plus, deregulated markets may be approaching a tipping…

People in this episode

Host: Bridget van Dorsten

Guest: Chris Seiple

Topics covered

• electricity demand
• data centers
• energy policy
• utilities
• energy transition
• grid resilience

Keywords

• electricity demand
• data centers
• utilities
• energy policy
• energy transition
• grid resilience
• large-load tariffs
• deregulated markets

Mentioned in this episode

Organizations: Wood Mackenzie, Power & Renewables, AI, renewable energy, solar energy

Places: US

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