T&D World Live Podcast: Rising Energy Demand, Data Centers, and the Return of Nuclear Power

In this episode of the T&D World Live podcast, managing editor Jeff Postelwait and Rod Walton, managing editor for Microgrid Knowledge and Energy Tech, took a more conversational approach to explore one of the biggest shifts facing the power industry today: the surge in energy demand driven by artificial intelligence, data centers, and electrification — and how utilities are responding.

A Rapidly Changing Energy Landscape

Postelwait opened the discussion by noting that after decades of flat electricity demand, the U.S. grid is now bracing for dramatic growth. Data centers alone could consume up to 9% of U.S. power generation by 2030, according to EPRI, with more than 100 gigawatts of new projects potentially coming online in the next decade.

“This is coming after several decades of things being rather boring for electricity demand,” Postelwait said, adding that AI, electrified transportation, and digital infrastructure are now reshaping utility planning.

Walton agreed, reflecting on how load growth predictions were “flat pretty much” a decade ago, when energy efficiency dominated the conversation. “Now we’ve come full circle,” he said, “to where we’re talking about much more generation.”

Utilities and Big Tech: A New Relationship

The pair discussed the evolving relationship between utilities and hyperscalers such as Amazon, Google, Meta, and Microsoft — companies whose data centers now depend on vast amounts of reliable, low-carbon power.

Walton pointed out that while these partnerships present new opportunities, they also create challenges. Utilities must balance the specialized needs of large customers with the interests of millions of residential ratepayers. “There’s a little bit of a backlash,” he said, referring to disputes such as Amazon Web Services’ power deal with Talen Energy in Pennsylvania, where some questioned whether ordinary customers should bear costs for corporate energy demands.

Postelwait added that public perception is another factor, “Are utilities still willing to offer special rates or incentives to attract data centers at a time when electricity bills are going up for everyone else?”

Infrastructure, Bottlenecks, and the Grid’s Future

Both editors noted that the surge in demand is colliding with real-world constraints: long interconnection queues, equipment shortages, labor gaps, and regulatory hurdles.

“Interconnection queues can last five years,” Walton said, emphasizing how mismatched the timelines are between fast-moving tech firms and the slower pace of power infrastructure development. “How fast do we need this AI? We need it yesterday — but can we build it fast enough?”

They also touched on distributed energy and microgrids as part of the solution, but agreed that large-scale investments in transmission and generation will still be necessary. “Sooner or later,” Postelwait said, “you get to a point where you’ve squeezed as much benefit as you can from technology — but you still have to build your way out of it.”

The Nuclear Renaissance

The conversation then turned to nuclear power, which is reemerging as a serious contender for meeting growing baseload and decarbonization needs. Walton described how tech giants and industrial firms alike are now investing in small modular reactors (SMRs) and advanced nuclear projects.

“There’s only one fuel out there that runs with a high capacity factor and zero carbon emissions — and that’s nuclear,” Walton said. Companies like Amazon and Google are exploring long-term power purchase agreements tied to advanced nuclear developments, even though no SMRs have yet been built in the U.S.

Walton cited projects such as Energy Northwest’s Cascade Advanced Energy facility and Dow Chemical’s planned X-energy reactor in Texas as examples of this new wave of interest. He argued that these efforts reflect a broader recognition that “you really can’t get to net zero without nuclear.”

Postelwait noted that public attitudes toward nuclear energy appear to be softening, with fewer political divisions compared to other energy sources. “We’ve kind of come a long way from the Cold War era,” he said.

The pair also discussed lessons from the recently completed Plant Vogtle expansion in Georgia — the first new nuclear units built in the U.S. in decades. Though plagued by cost overruns, the project’s second unit reportedly went far more smoothly. Walton suggested this mirrors the modular, repeatable learning curve that SMRs aim to achieve: “Once they’ve done the first few, they’ll keep getting better and better at it.”

Looking Ahead

Both agreed that the U.S. energy sector faces a defining moment. Utilities, regulators, and technology companies must collaborate to ensure that the grid can support both economic growth and decarbonization goals.

As Walton summed up, “We’ve got to see shovels in the ground. We’ve got to move forward.”

The episode highlighted how the intersection of AI, power infrastructure, and nuclear revival is reshaping not just the utility industry — but the broader economy it powers.