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

Concrete Brutalism building with slanted walls and light visible through an atrium.

What ‘The Brutalist’ Teaches Us About Modern Cities

How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.

February 28, 2025 - Justin Hollander

Complete Street

‘Complete Streets’ Webpage Deleted in Federal Purge

Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.

February 27, 2025 - Streetsblog USA

Green electric Volkswagen van against a beach backdrop.

The VW Bus is Back — Now as an Electric Minivan

Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.

March 3, 2025 - ABC 7 Eyewitness News

View of mountains with large shrubs in foreground in Altadena, California.

Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire

In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.

4 hours ago - Pasadena NOw

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

6 hours ago - Axios

Close-up of row of electric cars plugged into chargers at outdoor station.

Electric Vehicles for All? Study Finds Disparities in Access and Incentives

A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.

March 9 - UCLA Luskin Center for Innovation