At a moment of profound uncertainty for the U.S. energy system, one message came through clearly during a recent convening of industry leaders: we are at an inflection point. At the USEA State of the Industry Forum on Jan. 15, Alliance President Paula Glover joined leaders across the energy ecosystem to discuss how rising electricity demand driven by data centers, AI, electrification, and economic growth is colliding with long infrastructure timelines, affordability pressures, grid constraints and geopolitical uncertainty. This discussion showed that while innovation is accelerating, we cannot solely build our way out of today’s challenges. From the Alliance's perspective, this dialogue could not be more timely.

 

A Shared Recognition: Demand Is the Challenge We Must Manage Now

 

Across the discussion, panelists acknowledged a core reality: new generation, transmission, and infrastructure take years, often a decade or more, to come online. Meanwhile, load growth is happening now. Data centers and hyperscalers are seeking capacity today, not in 2035. Utilities and regulators are being asked to plan for demand scenarios that range from modest growth to exponential increases, often without certainty about where, when, or how that load will materialize.

 

In this context, energy efficiency and demand-side solutions are not optional, they are foundational.

 

Energy efficiency represents the fastest, most cost-effective, and most scalable resource available to the system. As highlighted during the session, efficiency is fuel-neutral and technology-agnostic: it’s about getting the most value out of every electron and every therm, regardless of how energy is generated. In times of uncertainty, that flexibility matters.

 

Innovation Isn’t Only About What’s New — It’s About What Works

 

While much of the conversation focused on next-generation supply technologies, hydrogen pathways, fusion commercialization, advanced nuclear, storage, and grid cybersecurity, there was strong alignment around the need to deploy solutions that already deliver results.

 

Panelist and President of ASE, Paula Glover, said “Even if something happened tomorrow, it would still be seven to twelve years before it’s here. But we have a problem we need to solve tomorrow.”

 

Examples discussed reinforced this point:

These tools sit squarely at the intersection of innovation and energy efficiency. They reduce costs, enhance reliability, and improve resilience,  all while buying the system time to build longer-term infrastructure.

 

Load Growth, Data Centers, and the Role of States

 

Another strong theme was the growing role of state regulators and state-level policy in managing large loads. While federal policy sets important signals, many of the most immediate decisions around siting, interconnection, planning, and cost allocation are happening at the state and local level. This is especially true for data centers and AI-driven demand. Meeting these needs will require new approaches to flexibility,  from targeted efficiency measures and demand response to behind-the-meter solutions, storage, and coordinated planning. States are increasingly central to these conversations, and energy efficiency must be embedded early in those decisions, not layered on later.

 

Why Energy Efficiency Must Be at the Front, Not the Back

 

A recurring takeaway from the dialogue was that affordability remains non-negotiable. As energy demand grows, customers, households, businesses, and communities, cannot absorb unchecked cost increases. Energy efficiency is uniquely positioned to address this challenge by lowering bills, reducing system strain, and improving performance across the board.

 

Put simply:

If basic efficiency and conservation are not in place, none of the more advanced solutions will deliver their full value.

 

Staying Engaged

 

The Alliance to Save Energy believes this moment calls for pragmatic leadership and collaboration. Energy efficiency and demand-side solutions must move from being viewed as complementary tools to being recognized as core infrastructure for a modern, competitive, and resilient energy system.

 

If you’re interested in engaging with us on email us at sgdowla@ase.org:

 

We encourage you to reach out and get involved. These conversations, and the actions that follow, will shape how effectively we meet today’s challenges and prepare for what comes next.