Powering the AI Boom: U.S. Plots a Grid Upgrade

AI’s Power Appetite Sparks Washington Action

With AI development surging, U.S. Energy Secretary Jennifer Granholm says the government is working swiftly to ramp up energy supplies to meet rising demand. Speaking at the Bloomberg Tech Summit, Granholm underscored how data centers—critical infrastructure for training and running AI models—are putting unprecedented pressure on aging electrical grids. She emphasized the need to expand generation capacity while modernizing transmission systems, pointing out that AI could consume up to 10% of U.S. electricity by the end of the decade if no action is taken. The Department of Energy is now collaborating with utilities, regulators, and tech companies to ensure the nation’s infrastructure can keep pace.

Green Goals Meet Gigabytes: Clean Energy in AI’s Future

Granholm also reiterated the Biden administration’s dual commitment to decarbonizing the grid while meeting AI’s explosive growth in demand. The challenge, she noted, is building out clean energy sources like wind and solar fast enough to supply new data centers—and doing so in a way that avoids bottlenecks. Projects are already underway to accelerate permitting and transmission builds, particularly in areas with high AI investments. Though she stopped short of naming specific companies, Granholm hinted that tech giants—and their need for “clean power at scale”—are now shaping national energy strategies.

Regulatory Loops and Silicon Demands

The conversation around energy isn’t just technical—it’s political. Granholm stressed that regulatory reform will be key to speeding up construction of new power lines and renewable installations. The surge in demand from AI is being treated as a top-tier infrastructure issue, on par with electrification pushes and EV vehicle grid integration. Washington’s urgency suggests AI is no longer just a computing issue—it’s an energy one.