AI Data Centers Push the U.S. Power Grid to the Limit

AI data centers are expanding rapidly, with Virginia hosting the world’s largest cluster and major investments from Meta, Microsoft, and Amazon, but the U.S. electrical grid is aging and may struggle to meet rising energy demand. Officials have floated an emergency electricity auction through PJM to cover growing costs from these centers, while residential rates have climbed and utilities are exploring higher charges for large customers. Projections suggest data centers could consume about 6.7%–12% of US electricity by 2028, and cooling needs could push water use up by about 170% by 2030, highlighting the challenge of coexisting data centers and households.