SCOTT DETROW, HOST:
America is in the middle of an AI boom, and that AI boom requires a lot of electric power, and all of that power, at one point or another, passes through a transformer. These key pieces of infrastructure are hard to make. The work requires patience, skill and people. And just like so many other key cogs of the whole system, the workers who make transformers are straining under a huge demand right now. Jennifer Hiller detailed this in a recent Wall Street Journal profile and joins us now. Thanks for coming by.
JENNIFER HILLER: Thanks for having me.
DETROW: Let's start with the super basic question. Remind us what exactly a transformer is and what it does.
HILLER: Transformers are this kind of nitty-gritty, basic piece of equipment for the grid. They might be as small as, like, a trash can that's on an electric pole or even as large as buildings. But what they do is they are basically changing voltage, so they're either increasing or decreasing voltage so that electricity can move around the country.
DETROW: You describe, in this really detailed way, the way that copper is wound and wound and wound, and you end up with 9 miles or more of copper in each one. I imagine that's a skill that takes a while to learn. What are the companies that make them doing to find the needed workers right now?
HILLER: There's been quite a lot of investment just in the last handful of years. I think there's been maybe somewhere in the neighborhood of more than $3 billion in investment to try to manufacture more transformers of varying sizes in the U.S. But to do that, you know, you need to build your facilities. You need to hire a lot of people. They take specialty materials. It's not just any kind of steel, so it's hard for them to just increase their supply chain.
And you've got to hire and train a lot of folks. And most big manufacturers do a really good job of working closely with their local community colleges and that kind of thing to try to bring workers into the system. But it's just really hard to, like, ramp this up as quickly as the demand for the equipment has ramped up.
DETROW: You talked to a lot of factory workers. By and large, were they happy to be working there?
HILLER: Yeah, I think so. I mean, it's a good job, and it's high-skilled, and I think they're proud of the work that they do. It's a very interesting job. At the same time, they also, kind of to a T, all said, this job maybe isn't for everybody. It's so detail-oriented, and you have to be maybe, like, the right kind of personality to be able to follow these engineering plans to a T.
DETROW: With all of the new material being brought in and the scaling up for more demand and the hiring of more people, is this industry expecting demand to just keep growing, or is there any thought that there could be a bust coming in a couple of years?
HILLER: So there's so much debate about this right now, I feel like, across the electricity industry. There's been a very low level of growth for about 20 years until you hit about 2020, and then electricity demand started to rise a little bit, which means that you need more equipment. But it's hard to know exactly where all of this is going. There are some, like, astonishing projections for where electricity demand is going in the U.S. So within the next couple of years, you could see data centers using, like, 12% of the country's electricity, which is just phenomenal growth in a small amount of time.
They definitely see a period of growth and that it is worth investing billions of dollars into new factories and expanded factories and more hiring. And so they do see a long number of years that would make those investments worthwhile. But nobody knows exactly what's going on with AI power demand and exactly what that power demand is going to look like. They're just seeing enough of a demand signal that they feel like they can make those investments with confidence.
DETROW: Jennifer Hiller covers the energy industry for the Wall Street Journal. Thanks so much for talking to us.
HILLER: Thank you. Transcript provided by NPR, Copyright NPR.
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