The artificial intelligence boom is creating unprecedented demand for electricity across the United States, putting severe strain on aging power infrastructure. Industry analysts report that data center operators are seeking approximately 60 gigawatts of new power capacity by 2030, equivalent to serving six major metropolitan areas simultaneously.

Utility companies nationwide are struggling to accommodate the surge in connection requests from data center developers. Commercial real estate firm CBRE documented a 17.5% decline in new data center construction pipelines during the first half of 2025, directly attributing the slowdown to power availability constraints rather than demand issues.

The challenges extend beyond simple capacity limitations. The current US electrical grid, largely constructed during the 1950s and 1960s, requires substantial modernization to handle concentrated high-demand loads. The Department of Energy has issued warnings that blackout incidents could increase by 100 events in 2030 without significant infrastructure investments.

Some technology companies are circumventing traditional utility connections by developing private power generation facilities. These off-grid solutions include natural gas turbines and dedicated generators, though such approaches raise environmental concerns and regulatory questions about long-term sustainability.