The Rising Power Demands of AI and Data Centers

The US faces significant challenges in powering the booming AI data centre industry due to strained interconnection queues, the need for new infrastructure, and market structures that may not incentivize sufficient supply, risking blackouts and higher costs. Industry leaders suggest that a large-scale, coordinated effort similar to the space race is necessary to meet the extraordinary growth in data centre energy demand, with innovative solutions like off-grid power and small modular reactors being explored.