Here’s how AI data centers affect the electrical grid
CNN • • business
Key Points:
- The rapid expansion of data centers driven by tech giants to support AI growth is straining America's aging electrical grid, leading to increased energy demand and higher electricity costs largely borne by US households.
- Virginia hosts the world's largest cluster of data centers, with developments also expanding to regions like Denver, Los Angeles, and Pennsylvania, often incentivized by state tax exemptions.
- Major companies such as Meta, Microsoft, and Amazon are investing tens of billions in data center infrastructure, contributing to a surge in electricity consumption projected to reach up to 12% of US electricity by 2028.
- Rising energy demand from data centers has caused residential electricity rates to increase, with some areas experiencing spikes up to 267% over five years; however, utilities and states
