The rapidly expanding AI data centers in the United States are facing a serious bottleneck in the country’s power grid. Existing infrastructure, struggling to meet the growing energy demand, is pushing tech giants to build their own power plants. Data center energy consumption has now reached 5 percent of total energy demand in the US.

Data centers continue to consume significant amounts of energy

As the global AI race continues, companies like Meta, Amazon, Google, and Microsoft are investing billions of dollars to build new data centers. According to a Goldman Sachs report, a single data center connection demand can reach up to 5 gigawatts, equivalent to the electricity consumption of approximately 5 million households.

Gartner data predicts that total data center electricity consumption in the US could reach 500 terawatt-hours by 2027. This means that 40 percent of data centers nationwide are at risk of not having access to sufficient energy. Significant increases in electricity prices are expected in high-density areas, with bills estimated to reach as high as $40.

Technology companies seeking to address the energy crisis are focusing on generating their own resources. Meta is building natural gas power plants for AI clusters, while Microsoft is working on a plan to reactivate the Three Mile Island nuclear power plant. Similarly, Google and Amazon have also considered new energy investments.

These companies are also investing in renewable energy sources. The US administration is seeking a solution. As part of President Trump’s “Artificial Intelligence Action Plan,” projects that strengthen the country’s electrical infrastructure have been prioritized.

However, experts believe that because data centers can be built very quickly, while nuclear power plants can take decades to build, the AI boom could become an energy bottleneck for the US if swift and effective action is not taken.