What can PG&E teach us about AI adoption?

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SCOTT CLAVENNA |?Welcome back! It’s been a week of cabinet picks in the U.S., from the predictable to the head-scratching. We took note of two: North Dakota Governor Doug Burgum to be Secretary of the Interior and chairman of the newly formed National Energy Council, and oil industry executive Chris Wright to lead the Department of Energy. In nominating Burgum, president-elect Trump said he hopes to “win the AI arms race with China” and by growing American energy supply while reducing its cost would “win the battle for AI superiority, which is key to National Security and our Nation’s Prosperity.”

Okay. That rhetoric shouldn’t come as much of a surprise, but Burgum does have real familiarity with the burgeoning data center market and its appetite for power. The Information recently reported that North Dakota was the focus of two major tech companies looking to build “supercomputers” that would require 500 MW to a gigawatt of power, and potentially expand to over 5 to 10 GW over time. These companies met with Burgum, though no further details have emerged. But it’s clear he’s ready to support the demands of hyperscalers with relaxed regulation and diverse energy supply.?

As for Wright, it’s still early, but if confirmed he joins a Department of Energy that has multiple workstreams focused on AI and energy, oversight of the 17 national labs and their AI initiatives, and a historically deep connection to the nuclear industry. He’s on the board of advanced fission startup Oklo, expressed outright skepticism of climate change, and has spent most of his time in the fossil fuel industry.?

It’s early, and they’re not yet confirmed, but two outcomes are coming into focus: these cabinet members will aggressively support prioritizing and powering AI; but if the goal is to power those data centers with 24/7 clean energy, that will fall to states and the tech companies financing them.

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