Unlocking a stronger, secure, and more resilient energy system with grid automation: transforming the power infrastructure for AI and renewables

A high‑growth technology company, driven by rapid expansion in AI capabilities, announces plans for a new data‑center campus requiring hundreds of megawatts of power—far more, and far faster, than the regional grid can supply. The construction timeline is aggressive, and expectations are high. The conventional grid expansion needed to support this project is estimated to take more than a decade to build.

This scenario is happening right now all over the world, but the challenge won’t be solved by people, steel, and concrete alone. It will require a new level of intelligence. Digital intelligence driven by grid automation and made accessible throughout the system so operators can anticipate load shifts, simulate conditions, understand risks, and maintain reliability in the face of unprecedented uncertainty. Only a digitalized and automated grid can keep pace.

Grid automation refers to the use of digital technologies such as sensors, advanced control systems, software, data analytics, and AI to monitor, manage, and optimize the electric power system with minimal manual intervention. It enables the grid to detect conditions, predict system behavior, and execute actions automatically or with operator guidance to improve reliability, efficiency, and resilience.

In this new Power Pulse season, we will explore grid automation topics and trends to help make sense of how the grid is evolving and how these technologies and solutions can come together to support our customers’ goals, wherever they are in the energy transition.

We are entering what many describe as the Age of Electricity, a period marked by a profound shift from defined, fuel‑based systems to fragmented, electrified ones. The IEA recently reported that electricity demand is on course to grow at least 2.5 times faster than overall energy demand through 2030. Electric vehicles, heat pumps, industrial automation, and next‑generation manufacturing are accelerating load growth. At the same time, data centers are becoming the critical infrastructure of the digital economy. With hyperscalers building AI‑ready facilities at unprecedented speed, global data‑center electricity consumption could reach nearly a thousand terawatt‑hours by 2030. AI workloads alone may account for up to one‑fifth of electricity‑demand growth in advanced economies.

Yet the world’s electrical infrastructure still reflects the past. Many transmission lines and substations were built decades ago and lack the upgrades needed to be prepared for such intense growth in demand. In most regions, grid expansion requires long permitting cycles, extensive environmental reviews, and large capital commitments. Meanwhile, AI clusters create load patterns the grid has never seen before: megawatt‑scale jumps in a matter of seconds, resulting in highly variable workloads, and a growing concentration of data‑center campuses near major urban hubs that are already stretched for resources. The physical grid can no longer operate effectively without a digital layer that unifies data, connects systems, forecasts demand, and guides decision‑making with precision and speed.

Grid automation is essential to the Age of Electricity  

Grid automation technologies and capabilities are the core of the grid’s digital ”nerve center.” Just as the brain and nervous system receive signals and interpret them to coordinate the body’s response, the digital nerve center of the grid synthesizes data from thousands of assets and makes sense of rapidly changing conditions.

• At the asset level, sensors and edge devices provide automation and control functionalities while collecting and delivering health status, performance,  and environmental conditions data.
• At the station level, monitoring and control systems act as decision hubs.
• At the network level, advanced control systems analyze network wide patterns.
• And at the enterprise level, planning tools, energy‑market software, and asset health and work management solutions create a coherent and complete end‑to-end view of operations. 

When these layers work together, operators gain the ability not just to observe and respond to changes in the grid, but to anticipate issues and act before they become disruptions

Utilities consistently say the same thing; it is not enough to digitize assets. The value lies in connecting information across the entire lifecycle of the grid. A transformer’s temperature reading becomes more powerful when combined with weather forecasts, load data, maintenance schedules, and price signals. A digital substation becomes more useful when its data flows into a unified network model that updates in real time. And AI analytics become exponentially more accurate when trained on rich, interconnected datasets instead of isolated snapshots. In essence, every digitalized component becomes a “nerve,” and the intelligence of the grid grows as these connect across the system.

The irony of AI in the energy transition is that it is simultaneously a major source of new demand and one of the most powerful tools we have to manage that demand. AI is already reshaping how utilities plan, operate, and expand their systems:

• It supports forecasting of renewable output, detection of anomalies in equipment behavior, optimization of power flows, and even predictive maintenance that reduces downtime and extends asset life.
• In some cases, AI‑powered tools can accelerate interconnection studies—the critical evaluations required before new energy assets connect to the grid—by as much as 80 percent.

Partnering with the best to digitalize the entire system
Partnerships with technology leaders such as NVIDIA, Microsoft, Google and AWS are pushing these capabilities further, enabling faster computation, enhanced modeling, and intelligent enterprise systems that can identify risks and recommend actions. These innovations help utilities stay ahead of the volatility and scale brought by AI‑era demand.

Yet to use AI effectively, the grid must also be digitalized at every level. Many utilities still operate networks that are almost functionally analog, with limited visibility and slow manual processes. In this environment, AI can’t safely or reliably support operational decisions. It doesn’t see the critical data still on clipboards or binders.

Modernization begins with asset connectivity, embedding sensors and communications that provide real‑time data. Substations can then evolve into foundational digital hubs that support fast automation and deliver high‑fidelity insights. IT and OT systems, historically separate, also must converge to create a unified, secure data environment. Across the full lifecycle—planning, building, operating, and maintaining—data must remain consistent, connected, and secure so insights carry forward rather than becoming trapped in silos.

Grid flexibility is also becoming a defining requirement. As AI data centers generate rapid swings in consumption and renewables introduce variability in generation, power‑electronics‑based systems are essential for maintaining stability. Technologies such as STATCOMs, energy storage, harmonic filters, and grid‑forming converters help operators absorb shocks, maintain voltage, and stabilize low‑inertia networks. Without these capabilities, even a well‑planned grid can experience instability when confronted with sudden changes in load or generation. But these too must have a digital component that can gather and deliver data successfully and securely into the operating system.

Cybersecurity in the digital grid: a new operational priority
Cybersecurity sits at the core of this digital evolution. As the grid becomes more connected, the threat landscape expands. A cyberattack on a highly digitalized grid could be more disruptive than a physical outage. To address this, cybersecurity must be embedded in the grid from initial design through deployment and monitoring. Rigorous testing, adherence to international standards, and secure‑by‑design engineering help ensure that increasing intelligence does not come at the cost of resilience.

Envisioning the intelligent, interoperable grid
One of the advantages of Hitachi Energy’s approach is a global perspective paired with a strong regional presence. The energy transition is unfolding differently around the world. Europe’s high renewable penetration drives early adoption of advanced controls. Asia Pacific markets are prioritizing asset reliability and rapid urban growth. North America faces unique challenges related to permitting and data‑center clustering. Despite these differences, the overarching trend is the same: growing demand, rising complexity, and an urgent need for digitalization. A decentralized operating model allows global best practices to be adapted to local conditions, ensuring solutions are open, interoperable, and tailored to specific markets.

Turning data into value and action
Across utilities, industrial leaders, governments, and hyperscalers, needs converge around three core priorities. 

• First, they want situational awareness—the ability to see clearly what is happening across the system.
• Second, they need predictive intelligence to anticipate issues and prevent outages, rather than reacting to them.
• Third, they require coordinated action, with systems that can respond automatically where appropriate and offer clear guidance when operator intervention is required. The digital grid delivers all three by turning data into understanding and understanding into action.

Imagine a grid that behaves like a living organism, complete with a strong nerve center that is sensing, learning, and adapting. In such a system, outages become rare because risks are understood early. Renewable energy becomes not just abundant but optimally used. Data centers flourish without overwhelming the network. Operators gain confidence, flexibility, and control. And the physical and digital layers of the grid converge into an open, interoperable, and intelligent system capable of navigating the complexity of a rapidly electrifying world.

The digital grid that the industry must deliver
The physical grid may be constrained by physics, but the digital grid has endless potential. As the demands of electrification, AI, and the broader digital economy continue to grow, the success of the energy transition will hinge on how quickly and effectively we deploy digital intelligence. For many customers, the question is no longer whether digital solutions are necessary. The question is how fast they can be implemented to keep pace with the new energy landscape.

Welcome to the next Power Pulse podcast season focusing on grid automation and digital capabilities where we will explore many of the topics addressed here and others related to the age of electrification.

Won’t you join us?

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