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Electricity demand from AI companies to push power demand up by 38% on US power grids
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  • Electricity demand from AI companies to push power demand up by 38% on US power grids

Electricity demand from AI companies to push power demand up by 38% on US power grids

FP Staff • January 27, 2025, 16:20:51 IST
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The surge in demand is largely driven by the increasing number and size of data centres powering AI technologies. These facilities, which are crucial to the AI boom, are set to consume massive amounts of energy—enough to power entire cities

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Electricity demand from AI companies to push power demand up by 38% on US power grids
In response to the growing energy needs, President Donald Trump suggested at Davos that new power plants should be built alongside data centres to avoid delays in energy supply and alleviate strain on the grid. Image Credit: Reuters

The rapid growth of artificial intelligence is expected to push electricity demand in the United States to new heights, with some regions seeing a 38 per cent increase in power usage over the next decade. According to PJM Interconnection LLC, which manages a 13-state grid from Washington DC to Illinois, peak summer demand is projected to rise by nearly 58 gigawatts by 2035. This would bring total demand to around 210 gigawatts, more than double the peak demand record of New England’s power grid.

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The surge in demand is largely driven by the increasing number and size of data centres powering AI technologies. These facilities, which are crucial to the AI boom, are set to consume massive amounts of energy—enough to power entire cities. As AI continues to expand its role in both national security and the economy, this demand will likely strain the ageing US electrical infrastructure, raising concerns about the grid’s ability to keep up.

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Growing data centre energy demands

Data centres, which support AI processing, are growing larger and more energy-hungry. Some new facilities are expected to consume electricity on a scale comparable to that of entire urban areas. With more businesses and governments relying on AI, these centres will continue to multiply, further driving up power usage.

The demand for electricity is also increasing at a time when much of the US’s power infrastructure is outdated. Existing power plants and transmission systems may struggle to meet the heightened demand, raising questions about the grid’s future reliability. While renewable energy and improved efficiency may help mitigate some of the pressure, the scale of growth in AI-related energy consumption could outpace grid upgrades.

Trump’s push for new power plants

In response to the growing energy needs, President Donald Trump suggested at Davos that new power plants should be built alongside data centres to avoid delays in energy supply and alleviate strain on the grid.

Trump’s comments reflect a growing concern that the US’s current power infrastructure may not be equipped to handle the demands of the AI revolution. As AI plays an increasingly vital role in the economy and national security, addressing these power challenges will be crucial to sustaining technological growth and ensuring grid reliability.

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