AI Energy Costs Hit $29 Billion
New research puts AI energy costs at $29 billion. That number could double in three years. At that point, there will be war over electricity, because the current supply and grid infrastructure are inadequate.
According to Semafor, “Combined rate increase requested by regulated US utilities in the first half of 2025, double last year’s amount. Data center demand is driving record US power price increases. “
The level of deals to build data farms is staggering. One project from OpenAI and Softbank calls for a $500 billion investment. An exclusive story in The Wall Street Journal suggests that progress is too slow, but it may eventually be achieved.
Elon Musk’s Work
Elon Musk’s xAI may have the country’s largest data center. It is located in the middle of Tennessee, near nowhere.
Microsoft, Alphabet, and Meta have already announced investments into the tens of billions of dollars.
And, these are just the major players. Several medium-sized AI companies will need energy at nearly the same levels.
$29 billion is just a start.
Sponsor
Find a Vetted Financial Advisor
- Finding a fiduciary financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 financial advisors that serve your area in 5 minutes.
- Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Get on the path toward achieving your financial goals!
More from ClimateCrisis 247
- AI Model Training Needs Additional Record Levels Of Electricity
- A $475 Billion Investment In AI Is Crippling Environment
- Residential Electricity Prices Soar Double Digits In Maine And Connecticut
- Energy Companies Get Permission to Use Coal In Dangerous Decision
