AI Data Center Build-Out Raises Concerns About America’s Future Power Needs

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Annual electricity demand for U.S. data centers is expected to double over four years to 530 TWh—the current power output of Texas.

As the United States prepares to invest billions of dollars in artificial intelligence (AI) infrastructure, public officials, grid operators, and utility companies are addressing concerns about how the nation’s electricity grid will handle the expected surge in power usage.

According to a recent S&P Global Market Intelligence report, annual electricity demand for U.S. data centers is expected to have reached over 280 terawatt-hours (TWh) in 2024. By 2028, that total is projected to nearly double to 530 TWh, or slightly more electricity than Texas produced in 2022. Similarly, a U.S. Department of Energy report forecasts total energy consumption by data centers to reach between 325 and 580 TWh by 2028, or about 12 percent of total U.S. electricity.

In a March 10 research note shared with The Epoch Times, Bank of America sustainability analyst Dimple Gosai said Big Tech firms have committed over $315 billion in capital investment for AI data centers this year. Those new projects will drive 50 GW of power demand by 2030.

“The push for 24/7 firm power has intensified as AI-driven data center growth amplifies grid stability and curtailment concerns, accelerating demand for dispatchable power,” Gosai said.

The most significant impetus behind the discussion on AI data centers and power grid infrastructure is President Donald Trump’s executive order on Jan. 23, calling for a multi-billion dollar build-out in AI and data center capacity during his second term in office.

As part of the president’s action plan, the National Science Foundation issued a request for information (RFP) on Feb. 6 seeking input on federal policy recommendations “to sustain America’s AI dominance.” The plan has received 268 public comments on the Federal Register docket, which closes on March 15.

Maksim Sonin, a Houston-based energy expert and Stanford University fellow, said power generation, grid infrastructure construction, and regulatory barriers are among the substantial obstacles facing data center development at scale. “A strategy for effective public-private partnerships can definitely help with federal policy development to bolster AI innovation,” he told The Epoch Times via email.

In Arkansas, Trump’s former press secretary, Gov. Sarah Sanders, is already working to pass legislation allowing public and private partners to get speedier approval for financing and strategic investments to upgrade and build utility-scale power projects, ranging from solar arrays to modular nuclear reactors.

By Wesley Brown

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