Offshore Wind Key to Meeting Increasing Electricity Demand

Offshore Wind Key to Meeting Increasing Electricity Demand

Innovation, like time, waits for no one. AI applications have skyrocketed in popularity since 2023, transforming industries from coding to copywriting, and rewriting the rules of business and society. It holds limitless promise. But this progress comes with a cost: energy.

America now finds itself hamstrung, unable to meet the growing energy demand of this increasingly commonplace technology.?

Consider this: the largest AI-powered data centers can consume up to 500 MW of electricity — enough to power a small city or large industrial facility. An analysis by Boston Consulting Group (BCG) found that data centers consumed 17 GW, or 2.5% of all American electricity in 2022. By 2030, BCG estimates that will jump to 7.5%, or 45 GW. The U.S. has more than 5,300 data centers, according to Grid Strategies’ National Load Growth Report, many of which are located near coastal areas, making offshore wind energy an ideal choice to provide reliable, affordable electricity.

The problem isn’t just about rising demand—it’s about timing and scale. If the country fails to act quickly, we risk an economic plateau, losing innovation to rival nations. China has made significant strides in electric vehicle adoption, and its recent DeepSeek AI chatbot showed that embargoes on the U.S.’s most powerful computer chips have not prevented Chinese companies from continuing to innovate. The only answer is to power innovation right here in America.

America needs a plan to accommodate this dramatic energy surge. The country must deploy smarter and faster solutions tailored to the realities of innovation, and tiered strategies to achieve both near-term relief (from faster-deployment sources like solar and land-based wind) and long-term grid stability (from offshore wind, nuclear, and advanced battery storage).

Data centers are already paying attention to this forecast and seeking direct-to-consumer power purchase agreements (PPAs) to secure energy for their facilities. For example, Google recently signed a PPA for over 350 MW of clean energy in Texas for one of its data centers, demonstrating energy security as a non-negotiable for development of these facilities.

This is where the “all of the above” strategy becomes essential. No single energy source can solve this challenge. Offshore wind power, as well as other offshore renewable energy sources, will be critical to meeting increasing demand. These sources can deliver electricity to locations most at risk of energy shortages like California, the Great Lakes, the Gulf region, and the East Coast.?

A commercial-scale offshore wind project is already supplying power to New York, five more are under construction, with a pipeline of more than 11 GW of capacity over the next few years. These projects will be a critical part of the U.S. energy portfolio, presenting opportunities for companies across a variety of industries. Many of those companies and professionals will convene this April in Virginia Beach for Oceantic Network’s International Partnering Forum (IPF), the largest offshore renewable energy conference in the Americas. Register today to be part of these conversations.

America has a chance to innovate. Fixed-bottom offshore wind turbines are tried and tested, but floating offshore wind is still in its infancy and the U.S. can cement itself as a global leader in developing that technology. Other offshore renewables, like solar, green hydrogen, and wave and tidal energy, remain mostly unexplored but present an equally strong opportunity for the country to demonstrate global leadership. Offshore wind companies are already looking into these possibilities and how they can be used in concert with offshore wind. IPF this year will host the Ocean Renewables Summit, providing a dedicated space to discuss these possibilities. Taking advantage of both floating offshore wind and other offshore renewables will be required to ensure America maintains a steady power supply.

The stakes couldn’t be higher. China’s rapid renewable energy expansion isn’t just about energy — it’s about leadership in the next industrial revolution. By acting decisively, the U.S. can not only meet its own energy needs but also set the global standard for sustainable innovation.?

The future won’t wait — and we can’t afford to.