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Cool new AI tech is coming to the rescue of old and strained power grids
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The rapid growth of AI computing and data centers is creating unprecedented electricity demand, prompting innovation in power grid technology.

The core challenge: Power utilities face mounting pressure to deliver more electricity to data centers and other growing sources of demand, with distribution rather than generation emerging as the primary constraint.

  • Data center operators and AI companies cite electricity access as their top operational concern
  • Traditional grid infrastructure expansion is slow and expensive, creating opportunities for technological alternatives
  • Growing adoption of electric vehicles and heat pumps adds to the strain on power grids

Innovative solution: Veir, Inc. is developing superconducting power cables that can transmit 10 times more electricity than conventional lines by using liquid nitrogen-cooled superconducting tapes.

  • The technology replaces traditional metal cables with specialized pipes containing superconducting materials
  • Veir’s system uses an evaporative cooling mechanism similar to human sweating, requiring less complex infrastructure than previous attempts
  • The company has secured $75 million in new funding from investors including Microsoft, National Grid Partners, and Breakthrough Energy Ventures

Technical challenges and market considerations: While promising, superconducting cable technology faces several hurdles before widespread adoption.

  • Previous experimental deployments proved expensive, with a 1-kilometer German project costing $14 million
  • Maintaining extremely low temperatures (-321 Fahrenheit) requires specialized equipment and ongoing maintenance
  • Veir hasn’t disclosed exact costs but suggests their solution will be competitive with premium cable projects exceeding $10 million per mile

Alternative approaches: Other companies are developing competing solutions to address grid capacity constraints.

  • TS Conductor offers carbon fiber-core cables that can triple power capacity
  • LineVision provides sensor-based “dynamic line rating” systems that optimize existing infrastructure
  • LineVision’s UK project demonstrated 19% capacity increases and $17.5 million in savings for National Grid in 2022

Market uncertainties: Recent developments raise questions about future electricity demand from AI applications.

  • Chinese company DeepSeek has demonstrated more energy-efficient AI model development
  • Tech stock valuations have suffered following these efficiency breakthroughs
  • Despite uncertainties, utilities continue investing in grid-enhancing technologies to adapt to changing energy landscapes

Looking ahead: Technology adoption outlook: While superconducting cables may remain a niche solution for specific high-demand applications, the broader trend toward grid-enhancing technologies appears robust as utilities adapt to evolving energy demands and distribution challenges. The success of these innovations will likely depend on their ability to deliver cost-effective solutions while meeting increasingly complex power delivery requirements.

AI’s electricity demand means cool new tech is coming to boring grids

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