AI data centers are pushing up electricity demand and straining grids

In short: Electricity use from data centers is rising fast because of AI, and power grids in key regions are starting to feel the strain.

What's going on

Data centers, which are the large buildings full of computers that run online services and AI, are using much more electricity than before. Estimates put global data center electricity use at about 415 terawatt-hours in 2024, around 1.5% of the world’s total. Some projections say it could pass 500 terawatt-hours by 2026, and other estimates say it could exceed 1,000 terawatt-hours by 2026 when AI and crypto are counted together, about the same as Japan uses in a year.

A big reason is AI work that runs constantly. Training and running AI models often relies on specialized chips called GPUs (graphics processing units, chips built for heavy number crunching), and many AI services need to answer requests all day and night. You can think of it like adding a new, power-hungry shift to the internet that never sleeps.

The pressure is not spread evenly. In the United States, data centers already make up more than 4% of electricity use, and some forecasts say that could reach 12% by 2028. The Financial Times describes a country as a “canary in the coal mine” for this problem, meaning an early warning sign, but no single country is named directly across sources.

What to watch

Utilities and governments may need to build new power plants, upgrade grids, and add more low-carbon power like wind and solar to keep up. Efficiency improvements, sometimes called “Green AI” (doing the same AI work with less electricity), could slow growth, but total electricity use is still expected to rise through 2030. A key question is whether new clean power can be added fast enough so rising demand does not clash with climate goals.

Source: Financial Times