What’s Inside
Why National Grid is investing $100M in AI startups
How utilities plan to meet AI’s surging energy demands
What this means for founders building in energy, climate and infra-tech
What happens when the most powerful technology of the 21st century collides with the biggest engineering feat of the 20th century?
That’s what I discuss with Aaron Panzer, Head of Venture Acceleration at National Grid Partners (NGP), in this latest episode of The Venture Variety Show. National Grid is one of the largest utility companies in the world, with operations across the U.S. and the U.K.
Back in March, NGP, which is National Grid’s venture arm, made headlines in energy and venture circles with a $100 million commitment to AI innovation. In this podcast, Aaron breaks down what’s behind the strategy, and what it will take to power AI’s growing energy appetite in the years ahead.
Aaron and I also talk about how AI is transforming everything from energy distribution to legal workflows, and why this transformation is forcing utilities to rethink infrastructure from the ground up.
And yes, for all you fans of Marty McFly and Doc Brown, Back to the Future makes a brief appearance.
Why Utilities Are Betting Big on AI
AI is often seen as a software problem. But as Aaron explains, it’s becoming just as much a power problem.
“You can’t be a tech company today without an AI strategy. And you can’t build an AI strategy without thinking about energy,” he says.
From customer service automation to system-level planning, AI is already making utilities smarter. But it’s also adding pressure. As hyperscalers like Google, Amazon and Microsoft race to build AI infrastructure, they’re placing unprecedented demands on the power grid.
Aaron notes that PG&E, for instance, is planning to add 15 gigawatts of new capacity in just a few years. That may be more than 12 times what the flux capacitor in the DeLorean required, but it’s only roughly 20% of what has been added over the last century.
What We Need to Build (Spoiler: Everything)
Aaron doesn’t sugarcoat the challenge. It’s not just about building more power plants. It’s also about:
🔶 Updating aged grid infrastructure
🔶 Expanding battery storage
🔶 Enabling distributed solar
🔶 Rethinking EV charging as grid assets
🔶 Even exploring small modular nuclear reactors (SMRs)
And AI itself may offer the very tools needed to help with this transformation, from optimizing grid usage to accelerating breakthroughs in battery chemistry and materials science.
“The grid is the greatest engineering marvel of the 20th century. AI might be the greatest of the 21st. These two are now completely intertwined.”
A Realistic but Hopeful Outlook
Aaron is optimistic, but not naïve. He acknowledges that short-term pain is inevitable, with hyperscalers moving faster than regulators and infrastructure struggling to keep pace.
Still, he believes AI will ultimately help get society to a more resilient, sustainable energy future. And National Grid’s $100 million commitment is a bet that startups will play a major role in getting us there.
“We’re incredibly excited about figuring out how AI can impact every facet of the utility business.”
Recap: 5 Key Takeaways
AI is a burden and a tool for energy systems
Utilities are rethinking infrastructure on a massive scale
Grid planning is becoming more dynamic and data-driven
Startups have a growing role to play in energy innovation
AI’s energy appetite is forcing urgent and creative solutions
To Get More Like This
Thanks for reading and tuning in. If you enjoyed this episode, please subscribe to The Venture Variety Show on your favorite podcast app (Spotify, Apple Podcasts and YouTube), and share it with someone exploring the intersection of AI tech and infrastructure.
And if you’re on YouTube, please check out my second show, The AI Cognitive Shift, which I produce in collaboration with AiNews.com, and where we explore how AI is transforming society and the future of work.
Share this post