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The AI boom is colliding with America’s aging power grid

Fast Company Tech Kolawole Samuel Adebayo June 2, 2026
The AI boom is colliding with America’s aging power grid
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# AI Data Centers Are Overwhelming America's Aging Power Grid The explosive growth of AI data centers is creating an electricity crunch that America's power infrastructure simply wasn't built to handle—utilities that expected a year's worth of new demand are seeing it consumed in just two months. AI companies, electric vehicle makers, and factories switching away from fossil fuels are all competing for power at the same time, putting the most strain on already-struggling regions like Virginia, Texas, and California. Without major upgrades to the grid, electricity shortages and higher energy costs could become serious problems within the next few years.

PG&E entered 2026 expecting a year’s worth of new electricity demand. Barely two months later, nearly all of it was already spoken for. Interconnection requests were piling up faster than planners had expected, overwhelming a regulatory system built for an era when electricity demand barely moved.

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