AI is estimated to drive most data center power demand growth through 2030

According to a report from the International Energy Agency, a typical AI data center in 2025 consumes as much electricity as 100,000 households, but the largest under construction are expected to consume 20 times as much. Global data center electricity consumption is expected to surpass Japan's total consumption by 2030.

AI's growing energy demands are driving tech companies to consider nuclear power

Big Tech has rebranded nuclear power as a green solution to address the strain on the grid from millions of people using power-hungry AI tools. As of mid-2025, generating one image uses as much electricity as charging the average smartphone, or leaving a household light bulb on for 87 consecutive days.

The engineering underlying the electric grid and why it needs to be modernized

The system includes generators for producing electricity and millions of miles of transmission and distribution lines to transport the energy. The substantial increase in the number of electronic devices and electrical demand since the construction of much of the grid in the mid-1900s has strained infrastructure, requiring continuous upgrades and massive investments in new construction.

Data center power demands have delayed the retirement of coal plants

US data center power consumption is expected to triple by 2035 to meet the growing infrastructure needs of AI platforms. Longer construction times and higher startup costs for renewable energy systems such as wind and solar have led to at least 15 coal power plant closures being postponed.

By 2028, data center power consumption may equal 22% of US households

Date from 2023 suggests that data centers accounted for around 4.4% of US electricity consumption, with new facilities supporting the AI boom consuming more power than the state of New Hampshire annually. However, the energy impact of individual use varies widely depending on the prompt and AI model. (Some readers may experience a paywall.)

According to the International Energy Agency, hyperscale data centers consume about as much electricity annually as 400,000 electric vehicles to provide 24/7 access to online applications, services, and information.

How microgrids can modernize electric grids to meet 21st-century demands

Just as having a single, outdated internet service provider leaves an area helpless in the case of an outage, failures in the electric grid can be devastating to communities. For this reason, hospitals, data centers, and other structures have their own backup power supplies. However, decentralized microgrids would provide areas with their own electricity generation and storage, thereby reducing overall grid load and reliance while enabling better electricity management.

Why decarbonizing the entire electric grid is impossible with its current infrastructure

Fossil fuel plants can be built anywhere and have thus typically been built near highly populated areas, such as coastal cities, where electricity demand is high. However, certain renewable resources operate most efficiently in specific regions, such as wind turbines in the Midwest, and therefore require substantial transmission infrastructure to be constructed to transport the generated electricity.

Since 2025, AI data center growth has created shortages and price hikes in graphics processing units and their supporting hardware, including high-speed memory.

Experts suggest there is a 10% chance AI will cause human extinction

AI superintelligence may hijack infrastructure, including power grids and transportation systems, if it surpasses human controls. It may also design unstoppable pathogens or deplete resources, like electricity, meant for human use.

More batteries in the power grid would create an on-demand energy reservoir

Most power grids are inefficient because they require enough generation capacity at all times to avoid blackouts. This means at any given time, as much as 50% of generating capacity at power plants can go unused. Batteries would reduce this inefficiency and allow for real-time adjustments.

As of 2025, China used the most electricity of any country, accounting for 33% of the total global demand and more than twice that of the US.

Learn how critical services, infrastructure, and people would be impacted by a US-scale blackout—a nationwide, long-term failure of the electric grid.

Explore plans for smart cities expected to be built by 2050

Locations such as Net City in China, Woven City in Japan, and NEOM in Saudi Arabia are expected to incorporate green energy, AI, and advanced transportation system technologies to enhance air quality, reduce congestion, and minimize pollution by significantly reducing personal car use.

The benefits and risks of smart grids, from improved efficiency to cybersecurity risks

By using a network of devices, including digital meters, sensors, and controllers, smart grids can quickly detect mechanical issues and fluctuations in supply and demand, automatically adjusting electricity flow to prevent cascading failures. While this is important for variable solar and wind power generation, many of these computer systems are designed to be controlled remotely, which increases the risk of malicious access.

Tesla's alternating current power's most of the world's electric grids

In 1879, Thomas Edison’s light bulb relied on direct current, but such currents can't efficiently transmit power over long distances. Nikola Tesla introduced alternating current, which feature far fewer energy loses. Despite Edison’s attempts to discredit AC, Tesla proved its efficiency by lighting the 1893 Chicago World’s Fair.

Research suggests AI data centers may be creating microclimate heat islands

An analysis of satellite data from 2004 to 2024 showed that land surface temperatures in the areas surrounding AI data centers typically increase by an average of 2 degrees Celsius (3.6 degrees Fahrenheit) after they begin running. Across the 6,000 global data centers analyzed by the study, temperatures increased by as much as 9.1 degrees Celsius (16.4 degrees Fahrenheit).

Cryptocurrency and data center growth are expected to increase greenhouse gas emissions

An analysis from the Open Energy Outlook Initiative estimates a 30% increase in emissions through 2030, as growing energy demands in regions where data centers are being built (20%-30%) far exceed the traditional growth rate of utilities in those areas (1%-2%). The emissions spike is expected to equal France's annual carbon output.

Understanding the power grid and how renewable sources fit in

The power grid is evolving to include ever-higher levels of solar and wind, which don't provide inertia. Should system planners and operators panic?

AI investment may be the next major economic bubble

A video examines the massive surge in AI spending—forecast to hit $500B by 2026—and how this may be propping up a fragile US economy. Experts warn that if AI investment slows or under-delivers, the consequences could be felt in markets, jobs and growth.

Geothermal power may meet 15% of global electricity demand growth through 2050

According to the International Energy Agency, the estimate would require the construction of geothermal capacity with an annual output equivalent to the combined electricity consumption in the US and India in 2024. The report suggests geothermal investment will reach $2.5T by 2050, with the integration of fracking technologies decreasing costs by 80% by 2035.

View a map of AI adoption rates around the world through Q1 2026, led by the United Arab Emirates (70.1%), Singapore (63.4%), and Norway (48.6%).

Simulate the effects of changing supply and demand on the electric grid

In this application, users can modify the demand of fictional cities and the supply of various generators, including a nuclear power plant and a wind farm, which can be disconnected from the grid. Notice that current may flow into or out of external systems to compensate for available generation. See what it takes to cause a blackout in different cities or shut down the entire grid.

The history of the North American power grid, which is composed of five major grids

Thomas Edison's Pearl Street Station was the first US commercial power plant, burning coal to power lamps for some Manhattan residents. Over time, local power plants would be bought out by larger ones, forming interconnected systems spanning multiple states. Today, the Eastern Interconnection and Western Interconnection are the largest of these systems.

Larger shares of solar power generation produce larger energy demand curves

Because solar energy is only available during daylight hours, transitioning an electric grid to solar requires significant ramp-ups and ramp-downs of other energy sources during mornings and evenings to compensate. Widespread adoption of affordable energy storage solutions can soften these curves.

AI may help the 1.4 billion people worldwide who lack access to basic financial services

Artificial intelligence is fuelling a financial technology transformation in some countries where an outsized number of residents lack access to basic financial services, including Brazil and Nigeria.

View a breakdown of global electricity generation in 2025, led by coal power plants.

In 2025, sovereign wealth funds invested more than $66B into artificial intelligence

Developing artificial intelligence, both from a hardware and software perspective, is time and resource-intensive. Sovereign wealth funds, particularly those in the Middle East, have heavily invested in critical AI infrastructure, like data centers.

As of 2025, Nvidia controls over 90% of the discrete graphics processing unit market, with its high-end components serving as the backbone for the AI data center boom, followed by AMD and Intel.

All clean energy technologies rely heavily on critical minerals

Although many of these minerals have been used for decades, such as copper in electrical wiring, the accelerating demand for them has strained existing extraction and processing systems. Supply chain disruptions for these materials may delay and increase the cost of transitioning to solar, wind, hydroelectric, and geothermal power.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

How lithium has become one of the world's most important elements

Lithium is the driving force behind electric vehicles as the key element in the lithium-ion batteries that power the cars. But as demand for EVs rises, will global lithium supply keep pace with demand? This report projects demand will reach up to four million metric tons of the mineral compound containing lithium by 2030, with batteries accounting for 95% of end-use applications.

Modular data centers can be transported on a truck for rapid deployment

Bypassing the complications involved in building larger facilities over the course of several years, such as construction costs and permits, these pre-fabricated, self-contained pods, roughly the size of shipping containers, can carry thousands of graphics processing units for small- and medium-scale AI-related tasks.

View a map of US data center infrastructure in 2025

Thousands of data centers across the country have already been built, with more under construction or planned. Facilities are connected via transmission and fiber optic lines, with the latter spanning an estimated length of 160 million miles.

When users prompt AI chatbots, both cooling systems that support data centers and power plants that rely on steam cycles to generate electricity for data centers contribute to water use.

Artificial intelligence may further enhance smart city data analysis

Identifying patterns within systems in the Internet of Things may enable AI tools to make informed decisions regarding transportation, safety, and sustainability without human intervention. However, such tools will also need to successfully address concerns about privacy, digital equity, and algorithmic bias.

Solar energy alone can fully power the world if transmission hurdles can be resolved

When light strikes a photovoltaic cell, electrons are loosened, which travel through a circuit where the energy can be used. Distributing energy from high solar intensity regions and storing energy for non-daylight hours is logistically challenging and costly.

A 1,000 square kilometer patch of solar panels in Africa can power most of Europe

The $500 billion Desertec initiative would have constructed massive solar farms in the Sahara and expansive electrical transmission networks across continents. However, the plan was built on concentrated solar power technology, which is more expensive and less practical than photovoltaics.