Takeaways from ROKK’s AI & Energy Survey

The rise of artificial intelligence (AI) and its effect on the United States’ energy sector is one of the most contentious topics today and is highly nuanced, including the strain on the U.S. electrical grid, challenges and solutions for new demand, fragmented policy and dinner table conversations like increased costs for families.

As a bipartisan public affairs and strategic communications firm that works with the world’s most influential companies, associations and nonprofits, ROKK Solutions has deep energy expertise and is uniquely positioned to tell the industry’s multifaceted story to the people that matter most.

We surveyed leading energy players–energy producers, government, industry groups and technology companies–to understand how AI affects them and what they think needs to happen for the United States to maintain AI competitiveness while ensuring grid reliability and affordability.

AI & Energy Challenges

An increase in energy demand from AI is no longer anticipated; it is already here, straining energy grids nationwide and resulting in higher energy bills for families and businesses. 61% of our respondents rated the current U.S. electrical grid capacity completely inadequate to meet AI-related energy demands. In addition, 59% of respondents believe that AI is a substantial challenge for electric grid stability.

These energy industry leaders face a consistent challenge: the regulatory environment. Half of respondents see the current regulatory approach as highly fragmented with goalposts shifting from administration to administration, while the other half believe there is no clear approach at all.

Respondents consistently cited critical barriers preventing the U.S. from meeting the rapidly increasing energy demand, including:

• Permitting reforms and red tape
• Long interconnection queues
• Transmission infrastructure constraints
• Fragmented policy

AI’s Opportunities for Energy

Although media coverage typically focuses on the challenges from AI-fueled energy demand, AI also presents tremendous opportunities and can be leveraged to help move the industry forward. Respondents included:

• Grid management & optimization: Our survey yielded multiple mentions of using AI to improve grid reliability, stability and efficiency. Plus, it can be a vital tool in efforts to modernize our grids.
• Increased energy generation: Responses emphasized AI’s role in accelerating new power generation, including off-grid power supply and behind-the-meter generation.
• Sustainability & emissions tracking: One respondent identified AI’s potential for tracking and measuring the sector’s emissions and sustainability performance.
• Innovation: AI has become synonymous with innovation across corporate America. The energy sector optimistically sees potential in AI to drive broader innovation industry-wide.

Policy Priorities

For the energy sector, the largest question mark stems from the policy and regulatory environment.

Overall, respondents expressed mixed sentiment on whether U.S. investments in AI can enhance energy security by improving grid reliability and resilience. Specific policy actions to best position the United States to capitalize on AI-energy opportunities while addressing potential challenges include: 

Permitting Reform

The majority of respondents mentioned the need for comprehensive permitting reform including faster approval times, greater regulatory certainty and expedited environmental review. Respondents stressed they need “permitting reform that allows projects to move forward” and “technology neutral permitting reform” to best position the U.S. to capitalize on AI-energy opportunities while addressing potential challenges.

Nuclear Energy

Overall, respondents remain neutral on whether U.S. investments in AI can enhance energy security by improving grid reliability and resilience. A recurring opportunity was nuclear energy, with respondents feeling that it is a promising path to increase supply sustainably. We heard how critical it is to “build better public-private partnerships to build new nuclear [infrastructure].” In the medium- to long-term, one respondent felt it was imperative to “embark on a large reactor building program over the next decade [to] deliver 10 GW of new nuclear by 2035.” In addition, next generation energy sources such as fusion provide an opportunity to increase supply safely and cleanly.

Infrastructure & Grid Reliability

Respondents called for expanding transmission capacity, establishing resilience guardrails and strategic planning to ensure the grid can support AI’s demanding power requirements. “The federal government should partner with the industry to rapidly expand transmission infrastructure and create strategic reserves of critical grid components.” Furthermore, the industry needs “transparency and planning initiatives/modeling, establishing reliability and resilience guardrails.”

The Future of AI & Energy

The energy industry is cognizant of the balancing act between short-term realities with a long-term vision and aspirational goals. In the next two to three years, respondents believe the most significant developments in the AI and energy landscape will be:

• State-level energy permitting
• Enablement of nuclear development
• Federal permitting reforms
• Framework shifts from indirect and voluntary to measured

In the long-term, respondents predicted that the most significant AI-energy policy developments in 2030 and beyond will be:

• Increased scrutiny of AI’s impact on consumers’ utility costs
• States that are considered pro-investment will pass laws that enable energy and data center investment
• The U.S. will make it easier to build energy infrastructure in America to challenge China and win the AI race

As the U.S. embarks on this next phase of technology and energy, it is more important than ever to have a clear, strategic plan that engages key stakeholders. Get in touch with our team to discuss how we can help tell your energy story.