{"id":2871,"date":"2026-07-06T10:43:09","date_gmt":"2026-07-06T10:43:09","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=2871"},"modified":"2026-07-06T10:43:09","modified_gmt":"2026-07-06T10:43:09","slug":"katie-mcginty-the-energy-economys-biggest-waste-problem-is-already-inside-the-system","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=2871","title":{"rendered":"Katie McGinty: The energy economy\u2019s biggest waste problem is already inside the system"},"content":{"rendered":"
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This\u00a0change\u00a0has already transformed parts of the modern economy.\u00a0Smaller,\u00a0cheaper\u00a0and more agile\u00a0technologies\u00a0are proving capable of outpacing far more complex, capital-intensive systems built for\u00a0a previous\u00a0era. They move faster, adapt\u00a0more easily, and deliver results sooner.\u00a0<\/p>\n

Read more Former Trump official: Washington finally let Pell Grants pay for welding school, then buried the idea in 85 pages of red tape<\/a><\/p>\n

For decades, energy strategy has been defined by one idea: build more. More power plants, more pipelines, more transmission. That logic still holds,\u00a0as\u00a0new supply\u00a0is\u00a0essential\u00a0with rising\u00a0demand. But it is also incomplete.\u00a0<\/p>\n

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Another\u00a0source of\u00a0energy capacity\u00a0is\u00a0emerging\u00a0\u2013\u00a0one that does not require waiting years for\u00a0permits,\u00a0financing\u00a0and construction. It is already embedded\u00a0into\u00a0the system\u00a0itself. It is the energy we\u00a0produce\u00a0today,\u00a0but\u00a0do\u00a0not\u00a0use.\u00a0<\/p>\n

It starts with a simple fact: globally, a staggering share of energy never\u00a0performs\u00a0useful work. As much as half of all energy input is lost as heat across power generation,\u00a0industry\u00a0and buildings.\u00a0<\/p>\n

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In industrial systems alone,\u00a020% to 50% of energy is wasted\u00a0as heat rather than applied productively.\u00a0This is not a marginal inefficiency. It is a parallel energy system\u2014large,\u00a0continuous\u00a0and\u00a0largely ignored.\u00a0Even now,\u00a0more than 3,000 terawatt-hours of usable waste heat\u00a0remains\u00a0untapped\u00a0globally each year.\u00a0To put that into perspective, that is\u00a0equivalent to\u00a0roughly\u00a0three-quarters\u00a0of annual U.S. electricity consumption,\u00a0enough energy to power hundreds of millions of homes for a year if captured and\u00a0reused.\u00a0<\/p>\n

That is the scale of\u00a0the opportunity.\u00a0Unlike\u00a0conventional supply, it can be accessed\u00a0far more\u00a0quickly.\u00a0<\/p>\n

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The urgency of this\u00a0opportunity is becoming clear as energy demand\u00a0grows.\u00a0<\/p>\n

Consider the infrastructure behind the AI economy.\u00a0The International Energy Agency projects that data\u00a0center electricity demand will\u00a0more than double by 2030 to around 945 terawatt-hours, equal to\u00a0about the entire electricity consumption of Japan today.\u00a0In advanced economies, data centers will\u00a0drive more than 20% of electricity demand growth\u00a0this decade.\u00a0<\/p>\n

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The standard conclusion is that only a massive expansion of\u00a0energy\u00a0generation can keep pace. But that view overlooks a critical point: a\u00a0meaningful\u00a0share of that demand is not intrinsic to computation. It is overhead.\u00a0<\/p>\n

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Today\u2019s data centers still\u00a0operate\u00a0with an energy profile shaped by legacy assumptions\u00a0\u2014 especially\u00a0about\u00a0cooling. Industry-wide, average power usage effectiveness (PUE)\u00a0remains\u00a0around 1.5-1.6, meaning\u00a0roughly one-third\u00a0of total energy is\u00a0wasted on non-compute work.\u00a0<\/p>\n

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As these legacy facilities modernize their IT equipment, and new AI factories are developed, that is not a necessity. It is a design choice.\u00a0Leading operators have\u00a0demonstrated\u00a0compliance with <1.3 annualized PUE targets while\u00a0eliminating\u00a0water evaporation from the cooling process. In other words, these data centers can\u00a0cut\u00a0non-compute related energy\u00a0by 50%, while avoiding reliance on community resources such as water.\u00a0At scale, that saved energy becomes\u00a0immediately\u00a0available\u00a0capacity.\u00a0<\/p>\n

Put differently, improving how we use energy can deliver\u00a0a\u00a0new\u00a0supply\u00a0without\u00a0new\u00a0generation, and it can do so immediately.\u00a0<\/p>\n

This is the essence of the \u201cage of agility\u201d in energy:\u00a0unlocking\u00a0capacity faster than it can be built.\u00a0The\u00a0same logic applies to thermal\u00a0energy.\u00a0Heat is\u00a0the\u00a0dominant form of energy in the global economy,\u00a0accounting\u00a0for nearly half of final energy consumption,\u00a0yet it is rarely treated as a resource once generated.\u00a0<\/p>\n

Read more Oil, gas tankers cross Hormuz via Oman-side route after U-turns<\/a><\/p>\n

That is a missed opportunity.\u00a0<\/p>\n

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Technologies\u00a0like\u00a0absorption chillers\u00a0make it possible to use heat\u2014not\u00a0electricity\u2014for\u00a0cooling. When integrated into\u00a0systems\u00a0such as\u00a0data centers, they can reduce\u00a0chiller\u00a0electricity\u00a0by 90% while converting\u00a0waste\u00a0into\u00a0a valuable\u00a0workhorse.\u00a0<\/p>\n

This is not about marginal gains. It is about fundamentally\u00a0improving\u00a0the productivity of energy systems.\u00a0In\u00a0Europe,\u00a0for example, waste heat from process industries\u00a0is\u00a0roughly equivalent\u00a0to total EU building heat demand.\u00a0<\/p>\n

The\u00a0advantages are not only technical;\u00a0they are\u00a0also\u00a0economic\u00a0and operational.\u00a0Building new power plants, expanding grids, and permitting infrastructure takes years, often decades. Efficiency improvements and thermal integration can be deployed in months. In a system facing rapid growth, that\u00a0difference in timing\u00a0becomes a competitive advantage.\u00a0<\/p>\n

The\u00a0economics\u00a0are\u00a0equally compelling.\u00a0Capturing and reusing energy reduces operating costs,\u00a0increases\u00a0available\u00a0capacity\u00a0and\u00a0improves\u00a0resilience. Global estimates suggest that\u00a0waste heat recovery alone could\u00a0save\u00a0tens of billions of dollars in annual savings.\u00a0And\u00a0heat pump technology has been shown to slash energy bills\u00a032% while cutting\u00a0emissions by\u00a060% as well.\u00a0\u00a0<\/p>\n

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None of\u00a0these\u00a0eliminate\u00a0the need for\u00a0large-scale\u00a0infrastructure. The world will still need more generation and transmission to meet\u00a0long-term\u00a0demand.\u00a0<\/p>\n

The\u00a0competitive edge is shifting. The winners in energy will not\u00a0simply\u00a0be those who only build the\u00a0biggest\u00a0systems. They will be those who combine scale with agility,\u00a0delivering\u00a0capacity\u00a0more\u00a0quickly,\u00a0efficiently\u00a0and\u00a0intelligently.\u00a0<\/p>\n

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That means treating efficiency and thermal energy not as secondary considerations, but as core elements of\u00a0energy\u00a0supply.\u00a0<\/p>\n

It also means changing how we measure the system. We\u00a0readily\u00a0count the energy we produce. We rarely count the energy we\u00a0lose.\u00a0In the old model,\u00a0building\u00a0bigger was enough.\u00a0In the emerging one, speed, precision and adaptability\u00a0will increasingly\u00a0determine\u00a0success,\u00a0and that means efficiency and thermal energy\u00a0have to\u00a0be priority resources.\u00a0<\/p>\n

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The energy transition will\u00a0depend on\u00a0both\u00a0large-scale\u00a0supply\u00a0and a\u00a0fast, often invisible layer\u2014efficiency, thermal recovery. Moving fast and smart \u2013 as an\u00a0efficiency\u00a0first strategy enables \u2013\u00a0is the winner as compared to\u00a0the more\u00a0cumbersome and costly\u00a0conventional approach.\u00a0<\/p>\n

The\u00a0advantage\u00a0is there for\u00a0the taking.\u00a0To\u00a0lead in this\u00a0era, focus\u00a0not only\u00a0on\u00a0how much\u00a0new energy capacity is built, but\u00a0on\u00a0how much\u00a0existing\u00a0capacity\u00a0can\u00a0be\u00a0unlocked.\u00a0Prioritize efficiency, unleash thermal\u00a0recovery\u00a0and accelerate smarter system design. The future belongs to those who move quickly to capture\u00a0the\u00a0energy\u00a0already generated\u00a0and just waiting to be used.\u00a0\u00a0<\/p>\n

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of <\/em>Fortune.<\/em><\/p>\n

Read more Gen Z was \u2018jaded about employment before we ever entered the workforce\u2019\u2014now psychologists say the stare has hardened into something worse<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As AI drives data center demand toward 945 TWh by 2030, Johnson Controls’ Katie McGinty argues the fastest new energy source isn’t generation \u2014 it’s the third of electricity quietly wasted.<\/p>\n","protected":false},"author":1,"featured_media":2870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-2871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-centers"],"yoast_head":"\nKatie McGinty: The energy economy\u2019s biggest waste problem is already inside the system - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=2871\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Katie McGinty: The energy economy\u2019s biggest waste problem is already inside the system - 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