US data centers are projected to consume a staggering 945 terawatt-hours (TWh) of electricity by 2030, according to the International Energy Agency (IEA), reaching levels similar to Japan’s current consumption. This surge in energy demand is driven primarily by artificial intelligence applications. However, the existing US power grid struggles to meet even present demands, raising concerns about its capacity to handle AI’s escalating electricity needs. 415 TWh of electricity was consumed in 2024 alone by data centers, with AI servers accounting for a significant portion. This trend is only expected to accelerate in the years to come, as AI technology continues to advance. The potential for energy shortages could lead to higher power bills, blackouts, and brownouts, potentially crippling the US tech industry’s advancement before companies even reach half of their AI development capabilities. 415 TWh used by data centers alone is a major factor in this challenge. The IEA’s analysis suggests that AI servers alone made up 24% of server electricity use and 15% of total data center energy demand last year, highlighting the immense energy footprint of an emerging technology. While the government is investing in incentives for AI development and implementing new regulations at both federal and state levels, experts are skeptical about the effectiveness of these measures alone. The US faces a significant challenge in meeting the future energy demands of AI, as fossil fuels like natural gas or coal may provide short-term relief, but building new facilities could take several years. Furthermore, renewables such as solar and wind require costly battery storage to maintain stable power for AI data centers. The outdated nature of transmission lines, some dating back to the 19th century in key cities, exacerbates the situation. Michael Polsky, CEO of Invenergy LLC, stresses the urgency of investing in high-voltage lines to facilitate nationwide energy distribution. He advocates for government support and incentives for power developers as a means to overcome this challenge quickly. Despite President Trump’s push for increased fossil fuel production to meet AI demand, analysts are skeptical about its effectiveness and potential environmental impact. The US is still committed to leading in AI development but needs to make significant progress on energy infrastructure investment. Polsky, who believes the US faces a national emergency regarding power grid limitations, calls for immediate action and support from government officials.