The AI boom tests the limits of growth

Axios reports that electricity demand has become the clearest measure of the AI industry's explosive expansion. Google's power consumption jumped more than a hundred forty percent between twenty twenty-one and twenty twenty-five—exceeding projections from a twenty twenty-three research paper. The sheer scale: electricity added by Google, Microsoft, Amazon, and Meta combined between twenty twenty-two and twenty twenty-five roughly equals twice what New York City consumes annually. Tech companies are improving efficiency per unit, but those gains are being overwhelmed by overall growth. The central question is whether the benefits will justify the mounting costs. The industry argues that larger models will eventually enable real-world advantages—from autonomous vehicles to renewable energy optimization. But MIT economist Daron Acemoglu and others express skepticism. While historical breakthroughs like railroads and the internet sparked investment booms years before delivering returns, Acemoglu says he finds it "not completely convincing" that AI will follow the same pattern, leaving the outcome genuinely uncertain.

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