Electric Giants Say They Already Have the Tools to Fix the AI Power Crunch | OilPrice.com
Haley Zaremba
Haley Zaremba is an energy journalist and researcher with more than a decade of professional experience covering global energy systems, land and natural resources, and…
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By Haley Zaremba – Oct 22, 2026, 4:00 PM CDT
- Schneider Electric agreed to buy Boston-based PTC for $22.6 billion, its largest acquisition ever and its third billion-dollar-plus deal this year, in a market where software mega-mergers are rare.
- Grid and transmission buildouts are lagging electrification, stalling clean energy projects in Southeast Asia and straining Europe’s rapidly digitalizing power system.
- Executives at Schneider and ABB say squeezing more out of existing assets is the near-term answer to AI-driven demand, because the technology is ready and the market has finally caught up.
The energy demand boom being driven by the artificial intelligence era is placing unprecedented strain on global energy infrastructure. Not only are the world’s energy production capacities – and especially clean energy production capacities – dwarfed by projected data center energy demand curves in coming years, the physical infrastructure needed to build and sustain never-before-seen rates of electrification and energy consumption growth is woefully underdeveloped. At present, the world’s energy grids and transmission lines are too small and too old to provide reliable energy to the world’s rapidly growing and developing population, much less the resource needs of Big Tech.
Around the world, global leaders are racing to expand their energy production capabilities, limit their greenhouse gas emissions, and shore up energy security – all in the face of runaway energy demand growth and constant geopolitical volatility wreaking havoc across international oil and gas supply chains. As a result, countries are electrifying faster than ever before, especially through the addition of solar power, which is now the cheapest form of new energy addition on Earth.
The problem is that the pace of electrification has outstripped the growth and retrofitting of the grid in most of the world. In Europe, policymakers are scrambling to keep up with the rapid digitalization of the power grid as they try to avoid the next catastrophic grid failure. In Southeast Asia, much-needed clean energy projects are being cancelled and stalled before they ever even start thanks to insufficient grid capacity and upkeep.
Clearly, the policy and engineering needs are enormous. Keeping pace with the wildfire spread of AI integration and data center hyperscalers presents a gargantuan challenge, but also a critical opportunity for engineering firms focused on power infrastructure. And major firms are starting to take major steps to align themselves with the needs of the AI boom.
Earlier this month, French energy technology and electrification conglomerate Schneider Electric agreed to acquire industrial software maker PTC, headquartered in Boston, for a whopping USD $22.6 billion. Reporting from Axios comments that this news is noteworthy because “Software mega-mergers are rare in 2026, as sector dealmaking has been trapped by AI-powered uncertainty.” However, there are some things about AI that are certain, and a pressing need for electrification and all of the industrial and engineering needs that come with it are among them. The Axios report goes on to detail that if the deal goes through as planned, “PTC would be Schneider’s largest-ever acquisition, topping its $11 billion purchase of Aveva in 2023, and its third billion-dollar-plus deal this year.”
Clearly, as reported by Semafor, “the energy demand surge from AI data centers, industrial electrification, and the need for more climate-resilient infrastructure is creating momentum to improve current systems.” But not all of that improvement needs to come in the form of disruptive new technologies such as smart grids and the types of next-gen energy production and storage tech being pushed by Silicon Valley, such as nuclear fusion and space-based solar power.
Indeed, rather than meeting cutting-edge innovation with cutting-edge innovation, firms like ABB are leaning on existing technologies and excess capacities that are currently going to waste in order to close the gap and meet surging AI-driven demand. “There is an opportunity to utilize existing assets more than we are today,” Schneider Electric’s CEO of digital grid Ruben Llanes told global nonpartisan news outlet Semafor last week. The firm’s electrification president Giampiero Frisio added that ABB has been ready for this approach for more than 20 years now, but “the business and the market were not ready to do it” until now.
A similar story is playing out in Europe, where the beleaguered energy grid is struggling to keep up with electrification and digitalization in the AI era, even though regulators already have all the tools they need at their disposal. “There’s a mismatch in speed rather than a gap in technology – in making digital solutions useful and deployable quick enough to keep pace with the physical transformation of the grid,” Elena Boskov-Kovacs, co-founder and managing director of Vienna-based Blueprint Energy Solutions, was recently quoted in a report for Enlit, a Dutch news outlet covering the energy transition.
By Haley Zaremba for Oilprice.com
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Haley Zaremba
Haley Zaremba is an energy journalist and researcher with more than a decade of professional experience covering global energy systems, land and natural resources, and…
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