Welcome to Part 2 of the MIDLIFE series, where we continue our predictive analysis of the key factors shaping U.S. security and global influence. MIDLIFE - Military, Infrastructure, Diplomacy, Law Enforcement, Intelligence/Information, Finance, and Economy - is essential for understanding the strategic environment as it integrates the foundational elements of infrastructure with the future of U.S. economics. By applying the MIDLIFE method, you'll gain insights into how each component influences the others.
In a previous blog, I discussed the presence of terrorists within our borders and the likeliness of a cyberattack targeting key U.S. infrastructure. In Part 1 of this series, I explored the military response necessary to counter domestic threats that could expose vulnerabilities in our critical systems. In this segment, I will examine the significance of our national infrastructure, emphasizing the devastating impact that physical attacks, electronic warfare, or cyber-attacks could have on our nation's stability.
While analyzing the energy grid structure may not align with traditional predictive trends, this assessment extends into a 5-year structural and economic forecast. Failure to implement the proposed strategy will not only hinder the United States' leadership in AI development but also weaken the economic foundation required to support the rising demand for energy.
Assessing American Infrastructure: The Energy Grid’s Role in National Security and Economic Expansion
The Fragile Backbone of American Infrastructure
The United States' infrastructure is at a critical juncture, with the national energy grid standing as one of its most vulnerable and neglected components. The grid’s susceptibility to cyberattacks, lack of modernization, and failure to expand in line with increasing energy demands pose serious risks to national security and economic progress. Despite the passage of a $1.2 trillion infrastructure bill in 2021, much of the funding was funneled into politically motivated pet projects rather than addressing the urgent need to fortify and expand the energy grid. Instead of significant investments in cybersecurity and energy capacity expansion, funds were diverted to initiatives such as electric vehicle (EV) charging stations, pedestrian-friendly infrastructure, and other politically driven programs that, while beneficial in some respects, failed to resolve the structural vulnerabilities in our energy system.
Cybersecurity Risks and Structural Weaknesses
The U.S. energy grid is a prime target for cyberattacks by state and non-state actors. The Colonial Pipeline ransomware attack in 2021 demonstrated the devastating impact that a single vulnerability can have, leading to widespread fuel shortages along the east coast. Foreign adversaries, including China, Russia, Iran, and North Korea, have actively probed the grid for weaknesses. The lack of standardized cybersecurity protocols and outdated infrastructure makes the system increasingly fragile.
Structurally, the grid remains fragmented and over-reliant on aging substations. This leaves it exposed to both physical attacks and natural disasters. A single point of failure can trigger cascading blackouts, as seen during Texas’ winter storm crisis in 2021.
Misallocation of Infrastructure Bill Funding
Rather than investing in reinforcing and expanding the grid, the infrastructure bill directed funds toward projects that did little to enhance national energy security. Examples include:
$7.5 billion for EV charging stations: While advancing electric vehicle infrastructure is important, the power grid’s fragility renders these stations useless during widespread outages.
$66 billion for Amtrak and rail projects: While rail infrastructure needs improvement, these expenditures do not address the root issues plaguing national energy distribution.
$110 billion for roads and bridges: Though essential, these projects did not resolve the core energy grid problems needed to support high-tech industries.
The Future Economy Depends on Grid Capacity
The future of America’s technological and economic expansion is heavily dependent on energy grid resilience and capacity. Industries like artificial intelligence (AI), big data, semiconductor manufacturing, and quantum computing require immense amounts of energy. Without an advanced and robust grid, these industries cannot reach their full potential, which threatens U.S. global competitiveness.
Steps to Strengthen and Expand the Energy Grid
Mitigate Cybersecurity Risks
Implement standardized cybersecurity frameworks across all energy providers.
Partner with private cybersecurity firms to conduct continuous penetration testing.
Develop AI-driven monitoring systems to detect anomalies in real time.
Structural Reinforcement and Attack Prevention
Harden substations against electromagnetic pulse (EMP) attacks and cyber threats.
Establish microgrids in key economic and military centers for redundancy.
Deploy underground transmission lines where feasible to prevent physical sabotage.
Expand Energy Capacity Through Integration
Collaborate with companies specializing in energy infrastructure, including:
Siemens Energy: Grid modernization and automation.
Schneider Electric: Smart grid technologies and industrial cybersecurity.
GE Vernova: Renewable energy integration and grid stability solutions.
Duke Energy and NextEra Energy: Large-scale energy distribution and grid expansion.
Diversify Energy Sources to Meet Demand
Coal and Natural Gas: Continue leveraging fossil fuels for baseline energy needs while modernizing plants with carbon capture technology.
Oil: Maintain strategic petroleum reserves for energy security.
Nuclear Power: The most viable long-term solution for high-energy demand industries. The U.S. must:
Expand small modular reactor (SMR) programs.
Encourage public-private partnerships for nuclear plant development.
Expedite the licensing process for new reactors while maintaining safety standards.
Expand Infrastructure to Support AI, Quantum Computing, and Data Centers
With AI and quantum computing poised to revolutionize industries, data centers will require exponentially more energy. Steps to support this include:
Constructing regional AI superclusters powered by dedicated energy hubs.
Establishing quantum computing facilities with direct grid integration.
Expanding high-performance data centers with sustainable energy solutions.
Turning Vulnerability into National Security Strength
A resilient energy grid is not just an economic necessity, it is a matter of national security. The U.S. can leverage its energy infrastructure as a strategic advantage by:
Building redundancy through microgrids and decentralized energy systems.
Enhancing resiliency by incorporating nuclear energy and energy storage solutions.
Protecting critical industries with dedicated cybersecurity and backup power systems.
The Way Ahead
The modernization and expansion of the U.S. energy grid must be a national priority. Failure to act now jeopardizes not only economic growth but also national security. By redirecting investments toward grid security, capacity expansion, and nuclear energy, the U.S. can secure its future as a technological and economic powerhouse. The time to act is now, before vulnerabilities become crises.
i3solutions has analyzed both operational and technical requirements. Our expertise enables us to identify weaknesses within the energy supply chain and provide strategic consulting and advanced technological solutions to fortify the grid. From predictive analytics for grid stability to real-time risk management, our team is equipped to support government agencies and private enterprises in reinforcing critical infrastructure.
Furthermore, a key aspect of fortifying the grid lies in the strategic reallocation of Infrastructure Bill funds. Rather than diverting resources to localized pet projects, states must prioritize initiatives that enhance national energy security, modernize grid systems, and promote sustainable energy solutions. Establishing clear priorities will ensure that infrastructure spending aligns with long-term economic and security goals.
By integrating advanced technology, targeted investment strategies, and expert consultation, the U.S. can build a resilient, secure, and future-ready energy grid capable of supporting its growing technological and industrial demands. This foundation will work in parallel with:
Increasing grid capacity, redundancy, resiliency, and cyber protection
Synchronization plans for companies and integrators to connect upgraded security, capacity and capability to the existing grid system
Allocation and authorization (location) of energy supply effort. There will have to be authorization of different uses (i.e. nuclear) of power sources for areas around population centers.
Data center establishment near largest capacity grid locations
Advanced AI/Quantum computing projections for future sustainment. In order to properly invest in upgrading the grid system it is crucial to project future capacity needs and energy consumption driven by increasing technological demands. A comprehensive assessment across multiple companies is essential to ensure a coordinated effort in supporting grid capacity expansion.
Delays in obtaining detailed analysis can mean the difference between proactive strategy and costly reaction. Without real-time insights, vulnerabilities in critical infrastructure remain exposed, leaving decision-makers unable to act before threats escalate. Send me an email (tony.thacker@i3solutions.com) to go into further detail on these threats to U.S. infrastructure or to discuss our Analytics Reach-Back Retainer Option—which ensures you have the intelligence needed to make faster, better-informed decisions when it matters most.
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