The rapid development of artificial intelligence is creating a huge demand for electricity that is pushing the U.S. power grid to its limits. As Jennifer Hiller reports in the Wall Street Journal, technology companies across the country are looking for power capacity for their AI data centers. But in many places, high-voltage lines are already at capacity, meaning that new connections will have to wait until the 2030s in some cases.
This situation is leading to a race for available power capacity and conflicts over how to finance the necessary grid upgrades. Some utilities are considering higher electricity rates or long-term contracts for data centers to secure investments. Experts estimate that data centers could account for up to 9% of U.S. electricity consumption by 2030. The challenge for utilities is to meet this growing demand without overburdening other customers.