Data centers have become the largest driver of a surging electricity demand that is straining US power grids. But the AI data center boom has also accelerated investment in a technology that could provide a silver lining for everyone—solid-state power transformers that replace industrial-age technology with modern power electronics.

Power grids currently rely on conventional transformer technology that is painstakingly assembled by hand and has a fundamental design dating back to the 1880s. Two copper wire coils manually wound around a steel core create electromagnetic fields that help step up voltage levels of alternating current electricity for long-distance transmission or step down voltage levels for the electricity use of homes and businesses. The largest power transformers cannot be mass-manufactured but are instead custom-built for each utility company’s electrical substations.

Manufacturing constraints, coupled with the scramble to upgrade US power infrastructure, have meant utility companies and other customers must wait up to several years for delivery of new power transformers. That not only hinders power grid infrastructure expansion needed to support growing electricity demand, but also delays the process of replacing aging power transformers.

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Climate change is poised to reshuffle the reliability problem facing decarbonized power systems, according to a new study that links weather extremes, long-term climate projections, and real-world infrastructure constraints. As grids rely more heavily on wind and solar, they become sensitive not just to the amount of renewable capacity installed, but to where that capacity is sited relative to transmission lines, load centers, and the local meteorological patterns that govern output.

Using high-resolution climate projections at 12-km scale, the researchers examined how future conditions could alter both renewable generation and electricity demand across two distinct US regions: New England and Texas. They then coupled these climate inputs with an optimization model operating at the county level, allowing the team to test how system design choices—particularly spatial siting of wind and solar and the presence of transmission bottlenecks—affect long-run adequacy.

The results suggest a sharp increase in resource inadequacy risk by mid-century. In both regions, climate change can drive prolonged periods of low renewable generation, which occur when meteorological conditions reduce wind and solar output while demand simultaneously rises. For Texas, the study finds the frequency of inadequacy events could increase dramatically—up to fivefold—if planning proceeds using non-climate-informed assumptions.

Crucially, the work shows that these risks are not determined by aggregate capacity targets alone. Fine-scale siting decisions can lock the system into unfavorable “weather-resource–grid” pairings, amplifying periods when local supply falls short and transmission limits prevent imports from compensating.

Yet the study also offers a pathway to resilience. Climate-informed planning can mitigate the emerging adequacy threat at relatively modest cost. Texas, for example, can maintain near-zero marginal investment cost by shifting wind capacity westward, improving alignment with future wind patterns and reducing reliance on constrained transfers.

New England requires a different strategy. The region faces a higher investment need—about a 2.34% increase—achieved through targeted solar and transmission expansion closer to load centers. This approach helps buffer localized shortfalls during future, climate-driven demand and renewable output mismatches.

Overall, the study argues that achieving climate-resilient decarbonization means moving beyond simple build-out schedules. Instead, it calls for high-resolution, climate-aware spatial planning that reveals siting opportunities invisible to coarse models—turning reliability from a static design metric into a dynamic, region-specific forecast problem.

Subject of Research: Climate change and resource adequacy risks in wind/solar grids, including optimal renewable siting
Article Title: Climate change reshapes resource adequacy risks and optimal renewable energy siting in wind and solar energy systems
Article References: Qiu, L., Khorramfar, R., Wang, S. et al. Climate change reshapes resource adequacy risks and optimal renewable energy siting in wind and solar energy systems. Nat Energy (2026). https://doi.org/10.1038/s41560-026-02109-3
Image Credits: AI Generated
DOI: https://doi.org/10.1038/s41560-026-02109-3
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