The late 2022 breakthrough in generative AI and the ensuing data center boom blindsided utilities just as demand was also rising due to repatriated manufacturing, industrial policy, and vehicle electrification.
Meeting the future power demands of data centers will require more than $2 trillion in investment in new energy generation, highlighting the urgent need for increased capacity.
Bain & Company predicted that data centers will account for the largest share of new electricity demand growth over the next five years, making up 44% versus 27% for residential.
Utilities companies in the US may need to upgrade their networks significantly to avoid power shortages driven by the rapidly increasing energy consumption of AI.
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