How AI is Affecting Energy Demand
Have you ever tripped a circuit breaker or had to reset an outlet strip?
You might have had your computer, printer, lamp—maybe even a coffee maker—all plugged into one power strip. Then you add a small heater, and suddenly, everything shuts down. The cause? Too much power (kWh) being drawn, which trips the breaker or thermal reset.
Now image that on a larger scale.
NVIDIA chips (or their equivalents), which power AI centers, consume around 200 watts each when operating. Companies like Amazon, IBM, Meta, Tesla, and Microsoft are planning to install millions of these chips. NVIDIA alone expects to ship 6 million chips by mid-2026.
The power demands for these chips are significant.
Consider 6 million NVDIA chips running 24/7 for one year is 36,792,000,000,000 kWh
In 2022 that energy represents.
• 6% of the entire US energy consumed
• 20% of the entire state of Illinois energy
• 43% of ComEd energy
Plugging in 43% demand into ComEd would blow a few circuit breakers! This doesn’t take into consideration all the computers trying to access the results of these new AI centers.
The consideration of creating such energy intensity in such a short time frame is having profound impact on energy utilities in the United States. Beyond generating power is the distribution of that power and the emissions of that energy production.
Solar and wind energy sources are the most economical and quickest to deploy choices, however they may not be considered due to political considerations.
Power demands cannot be met by issuing press releases. They take serious planning and billions of dollars in expenditure.
When you make your next Chat GPT query consider the power needs to deliver that answer.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations.
Additional Information:
Electricity data browser – Net generation for all fuels (utility-scale)
Everything You Need to Know About Nvidia H200 GPUs
Mizuho Analysts Raise Nvidia AI GPU Shipment Forecast for 2025 – EconoTimes
How The Electric System Can be Gamed
Ever get the choice you think sounds reasonable? For example, here is the new car you wanted. Only to find out it’s not new; it’s a lease, and you owe $1,500 / month in insurance.
So it is with the energy system.
Background. Utilities are monopolies in that only they can deliver power within their franchise territory.
ISO (independent system operators) act as the wholesale market. In their territory, they control which power plants are interconnected and pay for their power.
FERC (Federal Energy Regulatory Commission) they are responsible for having a national view (think for the Country). Ensuring the power markets work without unfair competition by ISO, utility, or state regulators.
The choice. Fast-track any “shovel ready” utility fossil fuel power project and grant interconnect approval within 90 days.
MISO’s proposal to alleviate real congestion, and seasonal demands (cold and heat) would authorize only utilities to receive approval for new power projects.
The decision. No from FERC.
MISO (an ISO), which oversees the electric grid across a large portion of the Midwest, is not alone in facing a clogged interconnection process that’s preventing it from swiftly adding new generation to replace coal and keep up with demand. FERC rejected the organization’s plan to address it by fast-tracking new gas plants, marking a win for clean energy advocates.
Some Reality.
The reality is that MISO has 100s of gigawatts of power projects in the queue awaiting approval. The difference is these are NOT utility-owned and are primarily fueled by solar, wind, and battery installations.
FERC saw this effort to address a real problem as an end-run around “reasonably balanced” options. The existing queue of power projects earned their spot by being economically better than alternatives, situated in needed areas, and financially capable of being built and operated without consumer impact.
Sometimes the solution is taking advantage of the problem.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed, and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations.
Realgy Announces Continued Savings for Ameren Customers
Realgy Announces Continued Savings for Ameren Customers
May 13, 2025 – Realgy, LLC is pleased to announce that despite no change in Ameren’s utility pricing since February 2025, Realgy will now deliver over 4.4% in savings for commercial customers.
Realgy has published a revised ManagedPrice™ rate of 8.64¢/kWh, allowing commercial clients to benefit from meaningful cost reductions without any corresponding change from Ameren’s standard rate.
Ameren’s next expected price adjustment is scheduled for after May 2025, according to their published tariff. Until then, Realgy’s pricing strategy will continue to provide measurable benefits to its commercial customer base.
ManagedPrice™ is Realgy Energy Services’ exclusive program where all customers in a buying pool receive the same price. Realgy will make purchasing decisions on behalf of the pool participants to provide a low cost of natural gas or electricity while reducing the negative effects of market volatility.
For more information on Realgy’s ManagedPrice™ and how your business can take advantage of competitive energy pricing, visit www.realgy.com or contact us at 860-233-2270.