By Nathan Owens
Publication Date: 2025-12-09 12:46:00
To support the next generation of manufacturing, companies are looking to artificial intelligence, automation and more. But first they have to address challenges around energy and resource use to sustainably take the next leap forward, according to experts at IFS’ Industrial X Unleashed event in New York City last month.
Here are a few takeaways from the discussions.
Electrical grids are at risk of bottlenecking the AI revolution
As more people use electricity to power their homes, heating, transportation and more, the electrical grids are becoming a bottleneck for the energy transition.
At least, that is what Sabine Erlinghagen, CEO of Siemens Grid Software, recalled saying years before AI really took off. As more data centers are built and demand for automation increases, the grids now risk becoming “the bottleneck of the AI revolution,”she said.
Electricity demand is expected to increase 50% by 2050, or roughly 2% per year, driven by data centers and transportation electrification, according to an April report from the National Electrical Manufacturers Association. Centers that handle AI workloads, specifically, are estimated to have demand equivalent to “the entire economy of Japan,”…