The largest power grid in the United States, serving a substantial portion of the country, currently has no spare capacity to accommodate new data centers, according to its independent watchdog. This shortage compels developers to build their own power plants to meet the rising demand, primarily driven by the rapid expansion of artificial intelligence (AI) technologies. The surge in AI-related electricity consumption has pushed power supply costs on this grid to record highs, with expenditures expected to reach $16.1 billion. The grid's installed capacity stands at approximately 53.7 gigawatts, representing 44% of global capacity and exceeding that of China and the entire European Union combined. In response to these challenges, new power generation projects are underway, including a nuclear fusion plant by Helion Energy, backed by OpenAI's Sam Altman and SoftBank, intended to supply Microsoft data centers by 2028. Additionally, plans for a massive AI data center in Cheyenne, Wyoming, highlight the growing scale of energy requirements, with its power demand projected to surpass that of all Wyoming homes combined. The situation is further complicated by limited availability of land and power resources, prompting exploration of alternative energy sources such as superhot geothermal energy. Similar pressures are anticipated in Europe, where data center power demand is expected to double by 2030, further straining regional grids.
European data center power demand to double by 2030, straining grids https://t.co/Yy4Cel5Pts
America’s data‑center boom is turning into an energy story as much as a tech story. Right now, the U.S. has about 53.7 gigawatts of installed capacity—44% of everything on Earth, more than China + the entire EU combined. In 2023, U.S. data centers used around 176 https://t.co/60ubH3AkUx
Helion Energy, a startup backed by OpenAI's Sam Altman and SoftBank's venture capital arm, has started construction on a site for a planned nuclear fusion power plant that will supply power to Microsoft data centers by 2028, the company said on Wednesday. https://t.co/2LF7X7e3Mh