TECH NEWS – The rapid expansion of large American AI data centers has put a strain on the country’s power grid.

Major tech companies, such as Meta, Amazon, and Google, are rapidly increasing their investments in AI to meet their computing needs and produce the best AI models. However, a great deal is at stake in the quest to perfect artificial intelligence. One of the most concerning aspects is the significant increase in energy demand in the United States. Considering the electricity grids created in the 1970s, it’s clear that America must quickly address its energy needs; otherwise, the AI craze could have a devastating effect on the country.

According to Goldman Sachs, data centers’ energy demand exceeds the US grid’s development cycles, which are already critical bottlenecks. If the current administration does not devise a feasible action plan, America may soon face energy supply problems. A single interconnection request can require up to five gigawatts of energy, equivalent to the consumption of over five million households.

Large tech companies consider GW centers to be the new norm, so energy demand is expected to increase dramatically. Gartner predicts that, by 2027, more than 40% of US data centers will not be able to operate at full capacity as the collective energy demand could reach 500 terawatt hours. This huge demand has also led to significant electricity price increases. According to Axios, monthly electricity bills in large data center regions could rise by $14–$37 by 2040, excluding inflation.

Companies cannot stop expanding their AI capabilities because they will fall behind their competitors. The only way for them to continue expanding in America is to build their own energy sources. For example, Meta is building natural gas-fired power plants for its multi-GW AI clusters, and Microsoft is reviving the Three Mile Island nuclear power plant project to power its supercomputers. Tech companies are entering the energy industry to replace the inadequate U.S. electricity system. While this may alleviate pressure on the US grid in the long term, concerns remain for now, as building power plants is a multi-year project while data center expansion is progressing rapidly.

America currently needs an effective solution. Interestingly, Trump’s AI action plan addresses these concerns and offers a viable solution for improving the US grid system.

Source: WCCFTech, Goldman Sachs, Axios