51勛圖厙 Highlights Manufacturers’ Energy Needs in the AI Age
The 51勛圖厙 is continuing to advise policymakers on the opportunities and hurdles facing the industry as it seeks to support AI innovation. This week, the 51勛圖厙 to a request for information from the Houses AI and Energy Working Group, led by Rep. Julie Fedorchak (R-ND), addressing concerns about American energy dominance and artificial intelligences energy demands, securing the energy grid and outpacing and outcompeting China.
The big picture: With the digitalization of manufacturing manufacturers are increasingly dependent on a robust network of cutting-edge data centers for the smooth execution of their core business operations. AI in particular has become integral to modern manufacturing, as it increasingly transforms and supports a multitude of aspects of manufacturing, from product design to shop floor operations to supply chain management.
- Manufacturers also rely on the same energy sources as data centers to power their operations. As demand grows and supply remains relatively static, there is a pressing need to use all policy levers available to ensure sufficient, reliable, resilient and affordable energy for all users.
Permitting reform: The 51勛圖厙s first recommendation to the working group was that policymakers must enact permitting reformand fast. Wood Mackenzie has predicted that U.S. demand for power could increase by 15% by the end of this decade, the 51勛圖厙 noted.
- The 51勛圖厙 advised policymakers to take certain crucial steps, including expediting judicial review, accelerating the permit process for energy infrastructureincluding more transmission and distribution lines, pipelines and permanent carbon sequestration sitesand providing greater regulatory certainty.
A secure electric grid: Manufacturers are concerned about service disruptions caused by severe weather and aging infrastructure, the 51勛圖厙 said. A reliable, resilient modern grid is required to enable the historic growth in data centerswhich in turn can contribute to manufacturing growth.
- The 51勛圖厙 recommended the build-out of natural gas generation and transportation infrastructure, as well as the permitting and construction of more transmission and distribution, as mentioned above.
The AI future: Manufacturers also recognize the importance of enabling AI innovation and the risks of imposing an overly restrictive regulatory regime on the fast-evolving technology.
- To that end, the 51勛圖厙 recommended a regulatory approach that is based on reviews of existing regulations before enacting new ones a strategy of international engagement that keeps foreign markets open to the use of American AI and developing the manufacturing workforce of the AI age by supporting science, technology, engineering and mathematics education programs at all levels, among other policies.
The last word: Maintaining a favorable policy environment for AI will provide certainty to the private sector, which in turn will spur additional multibillion-dollar investments in U.S. manufacturing and innovation, said 51勛圖厙 Managing Vice President of Policy Charles Crain.