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### America’s Energy Needs Are Projected to Skyrocket by the End of Decade
According to Goldman Sachs, data centers are outpacing the US grid’s upgrade cycles, leading to a critical bottleneck. Without action, the current administration could soon face a power problem. For instance, each interconnection request scales up to 5 gigawatts—enough to power over five million homes.
### Big Tech Firms Building Their Own Power Sources
Tech giants like Meta, Amazon, and Google are expanding their AI capital expenditures (CapEX) to meet their computing needs and maintain a competitive edge. However, this expansion is putting immense pressure on the U.S. grid system. To ensure continued growth in America, these firms may need to build their own power sources.
#### Examples of Big Tech Building Power Sources
– **Meta:** Building natural-gas-powered plants for its “multi-GW” AI clusters.
– **Microsoft:** Reviving the Three Mile Island nuclear plant project for its supercomputers.
Tech companies are moving into the energy business, as they see this as a way to bypass the inefficient U.S. electricity system.
### The Energy Demand is Expected to Grow Tremendously
Gartner predicts that more than 40% of US data centers might struggle with power supply by 2027, with collective demand reaching up to 500 terawatt-hours. This has also led to noticeable increases in power prices and monthly electric bills in high-datacenter regions.
### Addressing the Grid Issue
The U.S. grid may not be able to support data centers indefinitely. Building their own power sources is a viable solution for tech firms, though it comes with long-term planning challenges. For now, America needs an effective short-term solution. Interestingly, President Trump’s “AI action plan” addresses these concerns and proposes solutions to uplift the U.S. grid system.
This multi-year project could ease pressure on the US grid in the longer term but remains a significant concern for immediate future expansion.
