Data Center Demand For Electricity Provokes US Government Response - CleanTechnica

The rapid growth of artificial intelligence (AI) has triggered an intense surge in electricity demand, with some analysts predicting that by 2050, AI-related data centers could consume up to a quarter of the world's electricity. Data center developers, who build and operate these facilities for tech giants like Microsoft, Google, Amazon, and Meta, currently require gigawatts of power but are hesitant to commit to long-term usage levels. This uncertainty clashes with utility companies' long-term planning horizons, which span decades, leading to potential overinvestment in power generation infrastructure. The financial risk of underutilized capacity ultimately falls on other utility customers, contributing to rising electricity prices across the US. Electricity costs have surged notably, with the average US retail price hitting a record 18.07 cents per kilowatt-hour in September 2025, a 7.4% increase, and residential rates rising even more sharply. These increases are partly driven by the high costs of securing power capacity in regional grids like PJM