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AI Data Centers Set Off Power Squeeze as Utilities Question Soaring Demand

Regulatory scrutiny is testing tech power plans, with potential costs shifting to ratepayers.

Overview

  • New data from 451 Research shows U.S. hyperscale facilities will draw 22% more grid power by the end of 2025 than a year earlier, with demand projected to roughly triple by 2030.
  • Amos Hochstein warned at Semafor’s World Economy Summit that AI electricity needs risk outpacing supply and could become a crisis without faster action.
  • Utilities and regulators say some load forecasts are overstated, citing duplicate siting requests and tariff changes like AEP Ohio’s rule that preceded a drop in interconnection requests from over 30 GW to 13 GW.
  • Regulatory tensions are rising, with PJM’s market monitor this week urging FERC to reject a PECO EnergyAmazon transmission agreement, highlighting concerns about who bears grid upgrade costs.
  • Analysts flag higher household bills and stranded-asset risks as plans evolve, while operators increasingly pursue on‑site power options such as gas, batteries or hybrid systems, a strategy Nvidia’s CEO says can move faster than waiting on the grid.