"Utilities To Spend Billions To Power AI. Are They Jumping The Gun?"

"Chinese AI tech DeepSeek is forcing a second look at proposals to build a record number of new fossil fuel power plants"

"A new artificial intelligence model from China not only upended stock markets this week, it also called into question whether the rush to build new, mostly fossil-fueled power plants to run data centers is premature.

The new AI model from China, DeepSeek, uses less power and cheaper computer chips than the AI technologies currently in broad use in the United States, according to the Chinese company and analysts.

“There is a reason electricity stocks fell alongside tech stocks yesterday,” said Logan Atkinson Burke, executive director of the Alliance for Affordable Energy. “The news of more efficient AI means the plans and promises for unlimited load growth from AI points to the likelihood that energy needs have been overstated.”"

Pam Radtke reportds for Floodlight January 31, 2025.

Source: Floodlight, 02/06/2025