Why America’s aging energy infrastructure is holding back its AI future?
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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…
Filed under: News - @ June 8, 2025 3:42 am