AI boom tests New York's energy limits. National Grid and NYCEDC leaders share how innovation and planning can keep the city's power resilient. AI is supercharging New York City's economy, but that poses a challenge: AI companies and data centers are now placing unprecedented demands on the power grid. That has brought a heightened emphasis on planning and preparedness for this growth. To offer insight, Crain's New York Business Publisher Fred Gabriel moderated a fireside chat at Tech Summit, held at the Accenture Innovation Hub in New York City on October 23. He spoke with Andrew Kimball, president and CEO of the New York City Economic Development Corporation (NYCEDC) and Sally Librera, president of National Grid's New York business. National Grid is an international energy company that delivers electricity and natural gas to millions of customers in the Northeast. An AI-powered economic boom New York City's talent pool is growing, with 565,000 recent college graduates moving here in the past three years and adding to an existing base of 500,000, according to Kimball. "That is why Big Tech wants to be here," Kimball said. "It's why AI companies want to be here. It's fueling an enormous boom right now in commercial leasing." However, the city's electrical infrastructure isn't keeping up, despite ongoing investment in the state's green infrastructure, according to Kimball. "We have serious concerns about the local electrical distribution network within the city that needs to be massively upgraded," he said. With so much economic growth on the horizon, energy companies need to find new ways to bring more power online. "The electrification that is required to move us into the green economy that we all want to see was already pushing our infrastructure very hard," noted Kimball. "It is a real concern and it's a pocketbook concern... You're hearing about groceries, you're hearing about buses, you're hearing about rents, and all those things are real, but energy is pushing that as well." Currently the NY Independent System Operator reports having a "large load queue," comprised of requests by companies to connect to the grid by 2032. These requests will cumulatively draw about 10 gigawatts of power. Librera pointed out that figure has tripled in the last year and is equal to one-third of the entire state's current peak electrical capacity, 31 gigawatts. "It is teeing up a huge challenge for us as energy providers: generating more energy and having the infrastructure to move it," she said. To ensure grid preparedness, the industry is planning an approach that balances strategic infrastructure investments with development of renewable energy, according to Librera. For instance, National Grid is building out 1,000 miles of transmission in Upstate New York, with about 90% of the energy from zero-emission sources, namely hydro and nuclear, along with wind and solar that is currently providing nearly 4 gigawatts of energy. "We are actively working to unlock and bring more of that onto the grid to ultimately bring it downstate, where most of the energy is still generated by fossil fuels," said Librera. This is part of the state's "all of the above" approach that includes climate goals as well as meeting the need for immediate power to meet surging demand, according to Librera. "We need as much energy as we can get right now to fuel growth and keep it affordable for New Yorkers," she said. Reaching out to power companies early will be essential for business leaders who will need new connections in the next few years, advised Librera. "Some of the decisions companies make early on can really impact cost and timing to bring them the energy they need," she says. National Grid is working with corporate clients to identify flexibility in ramp-up load so they can start with smaller power draws and expand over time, Librera said. They are also using AI to create data banks and use analytics to make information about grid capacity and connection costs more accessible, Librera said. "This lets developers plan and execute faster," she said. "We know that this is critical to keeping New York competitive." It will be essential for power companies to address the needs of all sectors, including financial services, life sciences and the green economy, according to Kimball. "We're the number two tech ecosystem in the world right now, but we are the number one city for applied AI because we have diversified our economy," he said. "The challenge is how do we make sure it touches every type of business - not just those big innovation sectors, but the mom-and-pop accountant or retailer who needs the opportunity to compete in this new economy that is changing rapidly?" National Grid is supporting the Northeast Supply Enhancement natural gas pipeline into New York City, deeming it essential during the energy transition, according to Librera. The pipeline received water permits from the New York Department of Environmental Conservation and the New Jersey Department of Environmental Protection this month. "Ninety percent of the electricity production in New York City and Long Island relies on natural gas, so diversifying energy sources while accelerating renewables is essential," she said. Solving energy challenges will ultimately require new solutions, according to Librera. "We're going to have to innovate and collaborate across industries in ways we haven't done before," she said.

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