Impact of AI on US Electricity Demand and Infrastructure

This technical report examines the implications of the growing demand for electricity driven by artificial intelligence (AI) on the US power infrastructure. It outlines how AI is expected to create a significant demand shock, with data-center power consumption projected to nearly double by 2030, increasing its share of total US electricity demand from approximately 5% to around 9%. The report details the challenges posed by the current grid infrastructure, which is struggling to keep pace with the rapid deployment of data centers. It highlights that while generation capacity additions appear sufficient on paper, the reality is complicated by lengthy grid connection timelines and supply chain constraints. The report also discusses the emerging 'data-center premium' on electricity prices, which is already affecting residential customers. Furthermore, it presents policy recommendations aimed at reforming interconnection processes and addressing community concerns to better prepare the energy infrastructure for the demands of AI.