AI’s Thirst for Energy Threatens Electric Grids

The rapidly growing demand for electricity could lead to shortages and is already impacting where data centers are built.

1 minute read

May 21, 2024, 9:00 AM PDT

By Diana Ionescu @aworkoffiction


Two men in white and yellow hard hats and matching jackets looking up at power infrastructure in outdoor electrical substation or plant.

Andrii / Adobe Stock

The growing ubiquity of artificial intelligence poses a serious challenge to worldwide energy grids, writes Dan Lohrmann in GovTech.

Citing multiple news stories ranging in tone from alarm to boosterism, Lohrmann assesses the landscape and how experts perceive the future of AI versus energy conservation. An article in Barrons notes that “While AI’s surging demand may not lead to mass electrical outages, the AI boom is already changing how data centers are built and where they’re located, and it’s already sparking a reshaping of U.S. energy infrastructure.”

According to an article in New Scientist, “Over the next several years, many regions of the U.S. and Canada may struggle to ensure a reliable electricity supply amid soaring energy demand from the tech industry and electrification of buildings and vehicles.” 

The North American Electric Reliability Corporation (NERC) agreed, projecting widespread electricity shortages during extreme weather conditions. According to research from the AI Now Institute, which studies the social impacts of AI, “At current growth rates, some new AI servers could soon gobble up more than 85 terawatt hours of electricity each year, researchers have estimated — more than some small nations’ annual energy consumption.”

Tuesday, May 14, 2024 in GovTech

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Two yellow and white Dallas Area Rapid Transit light rail streetcars at station in Dallas, Texas.

North Texas Transit Leaders Tout Benefits of TOD for Growing Region

At a summit focused on transit-oriented development, policymakers discussed how North Texas’ expanded light rail system can serve as a tool for economic growth.

April 3, 2025 - KERA News

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Sign for Palisades Recreation Center in Pacific Palisades, Los Angeles, California.

Private Donations Propel Early Restoration of Palisades Playground

Los Angeles has secured over $1.3 million in private funding to restore the Pacific Palisades playground months ahead of schedule, creating a modern, accessible space that supports community healing after recent wildfires.

3 hours ago - Los Angeles Mayor

Aerial view of oil field in California with pumpjacks at sunset.

From Blight to Benefit: Early Results From California’s Equitable Cleanup Program

The Equitable Community Revitalization Grant (ECRG) program is reshaping brownfield redevelopment by prioritizing projects in low-income and environmental justice communities, emphasizing equity, transparency, and community benefits.

4 hours ago - The Othering & Belonging Institute

"Welcome to fabulous Las Vegas Nevada" sign with mottled shade from palm tree.

Planting Relief: Tackling Las Vegas Heat One Tree at a Time

Nevada Plants, a Las Vegas-based nonprofit, is combating the city’s extreme urban heat by giving away trees to residents in underserved neighborhoods, promoting shade, sustainability, and community health.

5 hours ago - KTNV