US data centers could require up to 945 terawatt-hours (TWh) of electricity by 2030, matching Japan’s present-day consumption, the International Energy Agency (IEA) warns. What’s fueling this demand? Artificial intelligence.
However, it’s pretty clear the current energy grid is already stretched thin, struggling to meet electricity demands. Add anything more, and it might just buckle.
More pressure on the energy infrastructure could translate into hiked power bills, brownouts, and blackouts for the American public. Worse still, if the grid can’t supply enough energy, it could bring the tech industry to a halt, potentially stifling AI development before companies can even begin to explore half of its possibilities.
The US is still dealing with aged energy infrastructure in key states
According to IEA’s analysis, data centers used up 415 TWh in 2024, about 1.5% of global electricity consumption, and AI servers accounted for a hefty share of that.
Per their report, AI servers alone made up 24% of server electricity use and 15% of total data center energy demand last year. That’s a staggering footprint for a technology still in its early stages—and it’s only expected to grow moving forward.
Alex de Vries, a researcher at VU Amsterdam and the founder of Digiconomist, believes the IEA’s figures are underestimated, calling their AI stats a bit vague.
Goldman Sachs also made their projections, estimating that AI data centers could burn through 165% more power; even Arm’s CEO warned that AI might use 25% of US electricity by 2030. Sounds a bit dramatic, but the real question is, can the country handle the future energy demands of AI?
The government certainly believes so, seeing that it already started issuing incentives and implementing new regulations both at the federal and state levels.
For instance, in April, President Trump signed executive orders to fast-track coal energy production—supposedly to meet the AI industry’s soaring power demands because reviving fossil fuels in 2025 is the answer. Well, analysts aren’t exactly thrilled with the president’s decision. Many doubt it’ll even be enough, and environmentalist backlash is only getting worse.
Focusing on fossil fuels like natural gas or coal could alleviate the AI power crisis, but building new fossil fuel-powered facilities may take at least three to five years. If we are talking nuclear plants, it could take even longer, roughly seven to 15 years. Furthermore, renewables like solar and wind require costly battery storage to maintain steady power for AI data centers.
Not to mention, multiple transmission lines and substations in several states are over 50 years old. Talk about ancient; some even date back to the 19th century, particularly in Boston, Philadelphia, New York, and Chicago, which begs the question, is there really a method to cater to AI power demands, or should companies rethink their tech development strategies?
CEO Michael Polsky asks the government to provide support to power developers.
The US is still very focused on beating China in developing artificial intelligence. However, if it stands a chance to win, it would need to invest in power superhighways to move large quantities of electricity, according to Invenergy LLC Chief Executive Officer Michael Polsky.
He argues that establishing a national transmission activity to set up high-voltage lines could even expedite the process. His words: “I do believe it’s an emergency because of how difficult it is to build things. We don’t have decades to figure this out. We have years.”
Additionally, he suggested the government offer support to power developers as it does for others like Musk and his spaceships. He claimed they should also be fairly compensated for their investments.
However, the Trump administration seems hell-bent on budget cuts, especially on clean energy power developers. Just last month, the government cut off nearly $4 billion in support from some clean energy projects. Not to mention, Invenergy’s Grain Belt Express project funding could be next on the chopping block, meaning it could potentially lose about $11 billion that could transmit 5 gigawatts of power across 800 miles.
Nonetheless, Invenergy President Jim Murphy believes the government will still fund their project. Polsky even argued that their project was of national concern.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
