Aid to Propelling the Artificial Intelligence Restoration in America

In the rapidly evolving world of technology, a new race is underway as tech giants like Anthropic, OpenAI, Google, and others invest heavily in national energy plans to power the growth of AI and data centers. This surge in demand is driving growth in regional and national electricity demands at a rate not seen in a half-century.

Construction is underway on dozens, and soon likely hundreds, of AI-centric data centers in the U.S., each requiring 200 MW to 1000 MW. A detailed national survey has already found a total of some 55 GW of new data-center projects already committed or under construction. The company making the largest investment in this sector is Meta, planning at least $60 billion in investments for 2025. Microsoft and Alphabet (Google) are also investing hundreds of billions of dollars combined in new AI data centers this year. Additionally, OpenAI is involved in a massive $300 billion investment deal for AI infrastructure through partnerships with Oracle, Microsoft, NVIDIA, and Softbank.

Anthropic's July 2025 roadmap highlights the need for broader-based efforts to unlock energy and data center buildouts. This includes accelerating geothermal, natural gas, and nuclear permitting. The market, however, is overweighting the pursuit of natural gas to meet power demands for data centers. The advance of knowledge, including AI, leads to the invention of new products and services, which inevitably increase energy consumption. A single AI server rack, refrigerator-sized, weighs as much as a car and uses as much energy annually as 100 cars.

The Federal Energy Regulatory Commission (FERC) has more than tripled its forecast for growth in U.S. power demand by 2030. The FERC forecast suggests the need for between 50 GW and 130 GW in extra generating capacity by 2030. The three major vendors for utility-scale gas-fired turbines are sold out through 2030, indicating the scale of the energy requirements.

However, the energy requirements of AI and data centers have raised concerns. Some are calling for digital sobriety to curb the market's appetite for digital services and energy. The "digital sobriety" cohort is seen as having an implicit (sometimes explicit) antipathy to growth and abundance. The no-growth greens have switched from preaching "peak oil" to a "keep it in the ground" campaign.

The debate around Big Tech and Big Energy is becoming embroiled in naked politicking. The issue is no longer about the exhaustibility of resources but about the need to weigh choices and tradeoffs, while minimizing government friction. The telecommunication network supporting data centers is power-hungry, made up of hundreds of thousands of miles of physical cables and wireless "roads". A single data center hosts hundreds or thousands of such racks.

Caterpillar announced a partnership with a Utah developer to supply some 4 GW of diesel engine generation. This underscores the urgent need for energy solutions to support the growth of AI and data centers. As the race to "dominate" AI continues, facilitating this growth is more like the 1956 Highway Act or the invention of the Boeing 707, rather than the 1957 Sputnik moment, which is often used as an analogy.

In conclusion, the energy demands of AI and data centers are reshaping the power landscape, necessitating significant investments and innovative energy solutions. The debate around this issue is complex, involving considerations of growth, sustainability, and government intervention. As the race to "dominate" AI continues, striking a balance between these factors will be crucial.