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Power Shortage Overtakes Chips as AI’s Bottleneck

Utilities and tech giants scramble for near-term supply, with Virginia logging 47 gigawatts of data-center demand.

Overview

  • Microsoft’s Satya Nadella warned that without nearby power, new AI chips could sit idle.
  • Dominion Energy reports about 47 gigawatts of pending data-center load in Virginia, underscoring the scale and speed of requests.
  • Data centers can be built in roughly two years, but high-voltage lines often take five to ten years, creating a timing gap.
  • U.S. utilities are delaying coal retirements and adding natural-gas generation, including a 10-gigawatt generator request in Georgia.
  • Tech firms pursue small modular reactors, solar and battery projects, and even orbital concepts as analysts flag a potential 45-gigawatt U.S. shortfall by 2028, though some experts say growth projections may be exaggerated.