The rise of AI is transforming industries across the U.S., with giants like Meta investing billions in new data centers to fuel their AI aspirations. But these large corporations aren’t the only ones paying a hefty price. To make AI visions a reality, more than a cash injection is required — they also need energy. The immense amount of power that AI initiatives require is placing a heightened strain on an already overloaded grid. In addition to businesses, consumers are also using more energy than ever, especially during recent extreme heat events. This summer alone, temperatures of over 100º swept the nation for weeks at a time, causing communities to keep ACs pumping around the clock.
All of these factors together are causing rising concern among grid operators, with 65% second-guessing their ability to meet demand, especially during extreme weather. The question many are now scrambling to answer is how to prevent energy shortages during these events and keep the lights on for the communities they serve.
The challenge - and opportunity - of renewable energy
To ensure the grid is as resilient as possible, relying solely on oil and gas power sources is no longer enough. Renewables, such as wind, solar and hydro power, are essential to supplementing the supply. However, renewable energy is notoriously challenging to manage.
Green sources are at the whim of the weather and fluctuate drastically, making them difficult to predict and integrate into the power grid. Utilities cite solar and wind variability as a top operational challenge (68%), with wind production relying on wind speed and air density and solar energy relying on intensity and duration of sunlight. However, energy companies remain undeterred. Despite these challenges, Meteomatics’ 2025 Weather Data Trends in Energy Report found that more than half (51%) of U.S. energy executives plan to increase their reliance on renewable energy sources within the next decade.
To manage shifts in production and make renewables as efficient as possible, utilities are turning to advanced battery technologies. Battery energy storage systems (BESS) enable energy companies to store any excess energy produced, thereby eliminating energy waste and serving as a backup energy source during high-demand intervals. On days when renewable energy production is low, these storage systems are crucial in maintaining the grid's operation. Over the next 10 years, 52% of utilities plan to increase their investments in BESS to improve grid stability.
Weather is the key to true energy efficiency
Utilities can proclaim reliance on renewables and invest more in BESS, but to unlock the full potential of these technologies, energy executives must have a strong understanding of the day-to-day environmental factors that affect production and demand.
The process of leveraging solar, wind and hydro power can be optimized with real-time, hyper-local weather forecasts. Knowing how long wind gusts will persist, or when a heat wave is sweeping through, is essential for understanding everything from a transmission line's capacity to whether utilities will have to fill in gaps in renewable generation. With that knowledge, they can confidently develop and implement a distribution strategy, ensuring the lights stay on for communities and businesses alike.
The majority of grid operators (62%) currently spend less than $50,000 annually on weather data; however, this is set to change, as energy executives (49%) indicate plans to increase investment in advanced weather forecasting solutions and data analysis tools over the next decade.
The future of the energy industry
It’s abundantly clear that AI isn’t just a fad that the business community will move away from in a few years. The benefits of the technology are numerous, and more companies will continue to integrate it into their businesses. As a result, power grids must adapt their strategy to remain resilient.
Renewables, with the support of weather intelligence and battery solutions, are a vital resource for supplementing demand. Paired with other energy sources like oil, gas and nuclear, if renewables can be harnessed effectively, utilities will be able to not only meet AI demand but also eliminate stressors for true grid resilience.

Dr. Martin Fengler is the founder and CEO of Meteomatics, a Swiss-based weather intelligence company founded in 2012. He earned his Ph.D. in applied mathematics from the TU Kaiserslautern in Germany. Dr. Fengler then went on to develop several numerical weather prediction codes for Meteomedia AG (now MeteoGroup Switzerland, integrated into DTN), where he later led the Technology and Innovation department.



