AI's Impact on Energy

MESSAGE FROM THE PRESIDENT

May 6, 2024

“Electricity demand is forecast to grow 20% by 2030, according to Wells Fargo,” shared a CNBC article yesterday. The return and reshoring of manufacturing and the electrification of almost everything means we need to act on our energy needs now. “AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030. The forecast power demand from AI alone is seven times greater than New York City’s current annual electricity consumption of 48 terawatt hours. Goldman Sachs projects that data centers will represent 8% of total U.S. electricity consumption by the end of the decade.”

What does this mean for suppliers of natural gas and hydrogen, to name but a few sources? We’re all hopeful for the role renewable sources will play in our future, and wind in the Midwest and solar in the Southwest makes sense. However, the weather is a fickle friend, just ask any farmer. The hard truth is that supply, reliability, and price matter when viewed through the lens of economics. Jobs, growth, and our shared success will need to consider all of these options as we close in on 2030. If Delaware is to be a regional powerhouse, we’ll need to address these infrastructure issues quickly.

News You Can Use

We start the first full week of May with speeches today by the Richmond and New York Fed Presidents. On Tuesday, Minneapolis Fed President Neal Kashkari will speak and consumer credit numbers for March are released that afternoon. Wednesday brings us more Fed remarks and wholesale inventories data for March. The remainder of the week includes more speeches and an early look at consumer sentiment and initial jobless claims for May.

BioNTech, Spirit Airlines, Tyson Foods, FMC Corp., International Flavors & Fragrances, Simon Property Group, and Williams Companies are among the group of companies with earnings calls today. Aramark, NRG Energy, Portillo’s, Walt Disney, Reddit, Electronic Arts, Lyft, and TripAdvisor are among the calls scheduled for Tuesday. Anheuser-Busch InBev, Choice Hotels, International Seaways, Sunoco, and Valvoline are part of Wednesday's calls. British chip designer Arm Holdings, Airbnb, B&G Foods, Chesapeake Utilities, Instacart, Topgolf Callaway Brands, GoodRx, Six Flags, and Yeti Holdings are among the companies with earnings calls later this week.

Michael J. Quaranta

President

Delaware State Chamber of Commerce

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