The U.S. is witnessing a $40 billion surge in data center construction, driven by the rapid growth of artificial intelligence technologies. This expansion is expected to significantly increase energy consumption, with data centers projected to account for 8.1% of national power demand by 2030, up from 3.9% in 2023. The Kobeissi Letter highlights a looming 36-gigawatt power shortfall in the U.S. grid over the next three years, alongside a 23% rise in electricity prices since the introduction of ChatGPT.
In contrast, China is focusing on fewer but larger data centers and is leading in nuclear power development, with 29 reactors currently under construction. This strategic move positions China to potentially mitigate energy demands more effectively as global data center needs continue to grow.
AI Boom Spurs $40B U.S. Data Center Expansion, Power Demand to Surge
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