Light-speed tech giants `shocked` by sluggish power sector as US grid creaks under strain

Surging power demand from data centres, reshored manufacturing and electrification of the economy is set to strain capacities of utilities and transmission operators and could lead to higher prices and a dirtier grid, a new report by research consultancy Wood Mackenzie warns.

Driven primarily by sudden surge in data centres and power-hunger artificial intelligence (AI) systems, with the consultancy identifying 51GW of new data centre capacity announced since January 2023 and concedes this is likely only a fraction of actual activity.