AI-driven data centres make power demand prediction harder: Report

New Delhi, June 26 (IANS) Around 67 per cent of electricity executives said ‘phantom’ load requests from AI-driven data centres ‑‑19 per cent of them never materialising — have made it harder to predict electricity demand, a report said on Friday.

Consequently, it becomes significantly harder to plan power systems, distorting forecasts and increasing the risk of both over- and under-investment, the report from Capgemini said after a survey of over 600 senior electricity executives at organisations with annual revenue above $500 million.

The firm found nearly 80 per cent expect more extreme and volatile demand patterns and 77 per cent report difficulty forecasting future demand accurately.

They have expected demand variability to emerge as a major system challenge, requiring new approaches to planning and operations.

Meanwhile, AI is expected by 60 per cent of utilities to play a growing role in improving grid efficiency and unlocking operational gains, but only few have implemented advanced AI-driven approaches.

“Utilities must decide not only how much capacity to invest in but also where and when to prioritise grid modernisation investments to support future demand while avoiding stranded assets,” the report explained.

Hyperscalers face a similar challenge as they have to make major infrastructure decisions against a backdrop of uncertain demand forecasts, grid availability and connection timelines.

The challenge is compounded by the geographic concentration of data centres.

Over 50 per cent of electricity executives identified load concentration as a major obstacle to reliable service, while large clusters of high-density facilities are creating localised bottlenecks that affect system stability and investment planning.

“AI is transforming electricity systems far beyond demand growth. It is exposing structural constraints in grid capacity, planning, and power availability, while making demand more dynamic and harder to predict,” said Claire Gauthier, Global Head of Energy & Utilities at Capgemini.

“Utilities have a defining role to play as system orchestrators, leveraging AI-enabled insights to balance grid and customer-owned resources, accelerate deliverable capacity, and enable the next phase of data-center growth,” she added.

—IANS

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