AI’s Power Demand Calls for New Technology for Energy Grids

Nowadays, AI companies are far less preoccupied with existential crises, or governmental regulations for that matter, and more worried about the issue of securing electricity to power data centers, and according to a Bloomberg report, for many AI companies, superconducting cables are the solution.

The AI-driven data centers, electrified transportation, and advanced heating solutions amplify, the power demand is outpacing grid infrastructure. Industry leaders now view electricity availability as a growth bottleneck, pushing investment in new grid-enhancing technologies.

Startups are developing innovative solutions to boost transmission capacity and efficiency, developing superconducting power cables as one of the most promising breakthroughs.

Superconducting Power Cables

Massachusetts-based startup, VEIR, developed superconducting cables power transmission that carry 10 times more power than traditional aluminum cables. Instead of conventional metal wires, VEIR’s system relies on superconducting cables technology tapes cooled by liquid nitrogen.

“The pace at which data centers are being built and expanding and the urgency of being able to serve higher density and higher power loads is extremely high right now,” said VEIR CEO, Tim Heidel.

Unlike past superconducting projects that relied on costly compression pumps, VEIR’s system uses an evaporative cooling-like method, allowing nitrogen to re-cool cables at key points, for greater energy efficiency.

VEIR, with a $75 million funding round from Munich Re Ventures, Microsoft and Breakthrough Energy Ventures, wants to deploy its technology this year at a data center.

Alternative Grid-Enhancing Technologies

While VEIR bets on superconducting power cables, others adopt a strategy which increases capacity on the existing grids. TS Conductor prepares carbon fiber-core cables that can carry up to three times more power than conventional lines.

LineVision, a Massachusetts-based startup, uses real-time sensors to monitor grid conditions. This technology helped National Grid save £14 million ($17.5 million) in 2022 by increasing power flow on a 35-kilometer section of the UK grid.

“We’re not looking to raise more money and believe we’re on the pathway to profitability,” said Jonathan Marmillo, LineVision’s chief product officer.

The explosive demand for energy from AI data centers places new pressure on utilities to modernize the power grids. Whether it be superconductors, dynamic line rating, or new superconducting transmission cables materials, companies race to future-proof the energy sector before the grid reaches its limits.

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