As AI continues to revolutionize the way we live and run our businesses, the downsides are becoming clear.  AI systems and the data centers that power them require significant power. 

Earlier this year, the International Energy Agency (IEA) released its  forecast for global energy use through 2026, including, for the first time, projections for power consumption related to AI, data centers and cryptocurrency. They estimate that the global demand for these uses could double by 2026. While AI isn’t the only driver of the recent massive uptick in demand, there is also a push to electrify more vehicles, homes, and buildings. This overall increase in demand could lead to rising energy prices for consumers and businesses.

How AI Use Drives Demand and Why it Matters

Overall, rising demand could mean a significant impact on energy prices, due to several key factors at play:

1. Market dynamics: As demand rises and the supply-demand balance tightens, market volatility and scarcity pricing are more likely.
2. Fuel costs: The price of electricity is influenced by the cost of the fuels used to generate that electricity, and as demand for these fuels also increases, prices are likely to climb.
3. Grid infrastructure investment: To meet rising power demand, utilities will need to invest in costly investments in new generation capacity, transmission lines, and distribution infrastructure, as well as smart grid technology to support rising power consumption. Rising electricity demand often coincides with a push toward renewable energy sources, the integration of which requires additional infrastructure investment.

How should restaurant owners and their energy decision-makers, who are likely embracing AI for their own unique needs, respond? 

Harnessing Energy Efficiency: A Guide for Restaurant Owners 

In the dynamic world of restaurants, your team is probably always on the lookout for ways to optimize operations and cut costs. If you haven’t already, it’s time to consider energy efficiency as a driving factor behind your successes.

A comprehensive approach to efficiency can help lower your energy consumption and bills as well as play a significant role in enhancing your restaurant's sustainability outcomes.

Start by benchmarking where you are today:

Energy benchmarking allows you to undertake an internal comparison of your restaurant's energy efficiency efforts and measure success. 

Utilizing tools like the EPA’s ENERGY STAR Portfolio Manager, or working with an energy consultant, you can gather in-depth energy data and establish a baseline for your energy usage.

Understanding your restaurant's energy strengths and weaknesses is invaluable. Armed with this information, you can start making needed adjustments to your processes or equipment to reduce overall energy consumption.

Your Guide to Energy Benchmarking 

1. Set Goals: It is essential to set clear objectives from the outset. These could range from validating savings from energy efficiency projects to assessing the environmental impact of your facility. 
2. Collect Data: You can only manage and improve on what you measure. Strive to collect a 36-month history of all energy bills, both utility and supplier, for a comprehensive view of your energy usage. 
3. Manage the Data: Make full use of tools like ENERGY STAR's spreadsheet and the Portfolio Manager benchmarking tool. Partnering with your energy supplier could help you manage and analyze this data. 
4. Strategize: Extract crucial information from your data and develop an actionable strategy. Look for trends, outliers and compare the performance of different areas in your restaurant. 
5. Act: Observe how people, processes and mechanical equipment impact your energy usage. Implement changes aligned with your strategy. Use the practices of top-performing areas as a guide to improve less efficient ones and keep testing to see if efficiency improves.

With an emphasis on energy efficiency, restaurant owners can significantly reshape their operations, capitalizing on reduced energy costs and better understanding their energy usage patterns. A reduction in energy costs equates to a reduction in overall business spending, which is a win every restaurant owner can celebrate.