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Artificial Intelligence data centers are putting increasing strain on electric grids in the US and around the world, the International Energy Agency reports. The demand for electricity by data centers will exceed 1,000 terawatt hours by 2026, according to an IEA report. Later in 2024, plans to expand the US electric grid will increase capacity by about 550 terawatt hours, intended for general energy consumption, not specifically for AI data centers.
From 2020 to 2023, the average retail price for electricity in the United States increased from $10.59 per kilowatt hour to $12.72 per kilowatt hour, about a 20 percent rise. According to the Federal Reserve, lower-income households are most affected by increasing energy costs.
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According to economic laws of supply and demand, increased demand for electricity puts upward pressure on prices. The demand from AI data centers causes electricity prices to be higher than they otherwise would be. […]
— Read More: valuetainment.com
