Tesla cofounder JB Straubel warns U.S. grid cannot keep pace with AI power demand as China builds generation capacity at unprecedented speed

At Fortune's Brainstorm Tech conference on Monday, Straubel said 'the grid can't handle it' and called the pace of energy demand growth 'unprecedented.' He noted that more than half of all data center projects are behind schedule, meaning projects get delayed and data centers get built overseas instead.

Straubel, who left Tesla in 2019 to build battery recycling firm Redwood Materials, said the industry needs a mix of rapid grid growth and behind-the-meter power solutions. He stated that about 100 times more energy storage is needed on the grid than today.

U.S. electricity demand is expected to surge anywhere from 50% to 80% between 2024 and 2050. Voltus CEO Dana Guernsey said maximizing existing grid capacity is key, since the grid is built to accommodate peak demand times and wastes much of its capacity the rest of the time.