From mid- to late-August 2025, analysts warn that the explosive growth of AI-powered data centers is triggering an unprecedented surge in electricity demand. In New York State, grid operators are already feeling the strain, as such centers could consume up to 12% of total U.S. electricity by 2028, jeopardizing clean energy goals and affordability. On the other hand, experts point to mitigation strategies: improving energy efficiency, implementing smart demand optimization, shifting computing loads to off-peak hours, and scaling renewable and even nuclear energy capacity. Yet balancing the support for AI breakthrough and energy system resilience is an emerging policy challenge.
AI Development Could Further Raise Energy Costs
