A new report released last week by the global risk firm DNV projects that AI electricity demand will grow tenfold over the next five years as a result of the rapid buildout of AI data centers. American families are already feeling the impact of this buildout as the cost of electricity has surged nearly 7% over the last year.
As America fights to win the race for AI dominance — a race that will decide who the economic, military, and political leaders are for decades to come — a growing challenge looms: power. The U.S. Department of Energy (DOE) projects that data centers, the physical backbone of AI, will grow from consuming more than 4% of total U.S. electricity today to 12% by 2028. A survey conducted over the summer by Deloitte of power companies and data center operators asked what the greatest challenges were they faced when it comes to building out data center infrastructure. Both groups named “power and grid capacity constraints meeting load growth” as the number one obstacle.
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