Basics
Powering AI: The Energy Demands of Data Centers
Energy & Utilities Intellectual Property Technology
Published on May 30, 2025
Explore This BasicSince the release of generative artificial intelligence (AI) models like ChatGPT, Gemini, and Perplexity, American businesses, consumers, and the federal government have rapidly integrated these tools into their daily operations. This widespread adoption has increased attention to the substantial computing power required to train and run AI systems. Unlike traditional computing tasks, training advanced AI algorithms requires immense processing power and vast data, making it significantly more energy-intensive. As AI models grow more complex, the data centers that support them consume more electricity, placing mounting pressure on the strained U.S. electricity grid. Expanding the grid’s capacity to meet this new demand will take years—if not decades—prompting industry leaders and policymakers to seek alternative solutions. Without proactive measures to address this growing demand, regions with high concentrations of data centers—such as Northern Virginia, California, and Texas—could face rising utility costs and, potentially, rolling blackouts. On-site mini-grids and alternative energy sources can alleviate data centers’ burden on the grid, promoting their energy security and reliability.
This Basic will evaluate the challenges facing the U.S. electricity grid as demand from AI data centers grows and explore the potential of alternative energy sources to alleviate grid pressure.
Links to Other Resources:
- Bloomberg Law- States Propose Data Center Energy Guardrails as Demand Soars (1)
- Columbia Center on Global Energy Policy- Projecting the Electricity Demand Growth of Generative AI Large Language Models in the US
- Data Center Dynamics- All power is local: The nitty-gritty of the US energy grid
- Department of Energy- Grid Modernization and the Smart Grid | Department of Energy
- Pillsbury Law- Trump 2.0: AI and Data Centers in a Time of Legal and Technological Disruption
- VPM- Data centers keep growing in Virginia — and so does energy demand