HomeAbstract of 11th-icarbmeThe Economics of Resilience: Balancing AI-Driven Data Center Expansion with Renewable Grid Stability in OECD Markets

The Economics of Resilience: Balancing AI-Driven Data Center Expansion with Renewable Grid Stability in OECD Markets

  • Jun 22, 2026
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Abstract Book of the 11th International Conference on Applied Research in Management, Business and Economics

Year: 2026

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The Economics of Resilience: Balancing AI-Driven Data Center Expansion with Renewable Grid Stability in OECD Markets

Bomate Pedro

ABSTRACT:

As we enter mid-2026, the intersection of digital infrastructure and energy markets has reached a critical tipping point. This study utilizes an econometric model to analyze the impact of high-intensity power demand from Artificial Intelligence (AI) data centers on regional energy pricing and grid volatility across 12 OECD economies.
We employ a modified Vector Auto regression (VAR) model to test the sensitivity of retail electricity prices to sudden shifts in industrial load. The relationship is expressed as:
Et = alpha + sum{i=}^p beta i E{t-i} + sum{i=1}^p gamma i D{t-i} + epsilon t.

Keywords: Energy Economics, AI Infrastructure, Grid Resilience, Applied Management, Sustainable Finance