Data Centers' Energy Demand: A New Grid Challenge
Update: 2025-11-25
Description
Data centers, once mere storage facilities, are now energy-intensive AI engines, straining global power grids. The digital economys exponential growth, driven by new silicon chips and GPUs, is outpacing renewable energys ability to keep up. Major tech companies are developing custom chips for efficiency, but overall energy use is still surging. The tension between AI development and grid capabilities means coal and natural gas will continue to power much of this growth through 2030, with grid assets becoming increasingly valuable.
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