RIEM News LogoRIEM News

AI & Electricity: Two Perspectives - CleanTechnica

AI & Electricity: Two Perspectives - CleanTechnica
Source: cleantechnica
Author: @cleantechnica
Published: 8/19/2025

To read the full content, please visit the original article.

Read original article
The article "AI & Electricity: Two Perspectives" from CleanTechnica discusses the growing concern over the substantial electricity demand driven by artificial intelligence (AI) data centers. Analyses suggest that within a few years, AI data centers could consume up to 12% of the United States' total electrical demand. This surge in power consumption comes at a time when about 90% of new electricity generation is from renewable sources like wind and solar. However, current U.S. government policies are criticized for favoring expensive and polluting energy sources such as coal and methane, which could exacerbate electricity costs for consumers and manufacturers alike. Economist Paul Krugman highlights the economic implications of rising electricity costs linked to AI infrastructure. He points out that utilities typically pass the cost of expanding capacity to support data centers onto ordinary customers, contributing to a recent spike in retail electricity prices that outpaces overall inflation. The largest U.S. grid operator has recommended that large data centers generate their own power to alleviate grid strain

Tags

energyAI-energy-consumptiondata-centersrenewable-energyelectricity-pricesenergy-policypower-grid