Building up the US power grid won't be wasted, even if the AI bubble bursts

The US power grid is preparing for an AI-driven boom that might burst. The Register reports that datacenter energy consumption is growing by twenty-six percent this year and will account for roughly seventy-five percent of projected US power demand growth over the next decade, requiring about thirty gigawatts of new capacity annually. But will that demand hold? Consulting firm McKinsey & Company found that while corporate interest in AI is high, seventy-one percent of organizations report negative implementation outcomes. McKinsey says the greater risk is underbuilding, not overbuilding—because even if AI demand slows, the infrastructure will serve electric vehicles and industrial electrification instead. Still, the firm estimates the US faces a capacity gap of thirty to fifty-five gigawatts by twenty thirty. Utilities are extending coal and gas plants and funding on-site power generation at datacenters to help bridge the gap.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton