AI is bringing enormous benefits to consumers and businesses. It is also bringing significant strain to the power grid. Some researchers estimate that one ChatGPT query requires the energy equivalent of lighting a lightbulb for 20 minutes and 10 times as much electricity as a single Google search. Goldman Sachs projects that AI will increase data center power demand by 160 percent nationwide through 2030.
The Department of Energy also expects data centers' energy use to balloon. A December 2024 report forecasts that cloud computing will account for as much as 12 percent of the nation's annual energy use by 2028—up from 4.4 percent in 2023. Virginia, California, and Texas will each serve as a "primary hub" for both small- and large-scale cloud data centers, according to the Energy Department.
Texas is the fastest-growing consumer of electricity in the nation, according to the Energy Information Administration. In 2024, the Electric Reliability Council of Texas (ERCOT)—which manages about 90 percent of the state's grid—said electricity demands could nearly double by 2030 as data centers and cryptocurrency grow and as oil operations in the Permian Basin begin to run on electricity instead of diesel. In March, ERCOT said it has received requests for 99 gigawatts (GW) of new connections—enough to power almost 25 million homes—from large power users (including data centers) in the past year. The state will need to add the energy equivalent of 30 nuclear power plants by 2030 to meet demand, reports Bloomberg.
