"Power is probably the forever bottleneck": Grid delays threaten the AI race.
Summary
The rapid growth of artificial intelligence (AI) is running into problems because the electric power system in the U.S. is slow to expand. Goldman Sachs warns that the energy needed for data centers and AI technology could be a major delay in the development and use of AI.Key Facts
- Global power demand for data centers is expected to rise 170% between 2025 and 2030, with the U.S. responsible for over 60% of this increase.
- Around $7.6 trillion is planned to be spent worldwide from 2026 to 2031 on computing, data centers, and power infrastructure.
- The U.S. has about 2,600 gigawatts of power projects waiting to connect to the grid, which is more than twice the current grid capacity.
- It typically takes about five years for power projects to get approved and be ready to operate.
- Many power projects face delays or cancellations, often due to local opposition.
- A large part of AI infrastructure funding depends on debt, increasing financial risks if projects take longer than expected.
- Tech companies may start funding power generation and electrical infrastructure directly to support their data centers.
- Utility companies are expected to spend $1.3 trillion from 2026 to 2030, benefiting from AI-driven investment.
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