The race to build facilities that provide artificial intelligence has fueled a boom in data centers that train and run large language models, like OpenAI’s ChatGPT and Anthropic’s Claude. The boom has upended a utility industry that grew used to 20 years of no increase in electricity demand.
But now, some investors and energy market analysts are questioning whether the AI race has turned into a bubble, one that would prove expensive to unravel as new transmission lines and power plants are built to support those data centers.
Consumers served by the largest electric grid in the U.S. will pay $16.6 billion to secure future power supplies just to meet demand from data centers from 2025 through 2027, according to a watchdog report published this month.
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The race to build facilities that provide artificial intelligence has fueled a boom in data centers that train and run large language models, like OpenAI’s ChatGPT and Anthropic’s Claude. The boom has upended a utility industry that grew used to 20 years of no increase in electricity demand.
But now, some investors and energy market analysts are questioning whether the AI race has turned into a bubble, one that would prove expensive to unravel as new transmission lines and power plants are built to support those data centers.
Consumers served by the largest electric grid in the U.S. will pay $16.6 billion to secure future power supplies just to meet demand from data centers from 2025 through 2027, according to a watchdog report published this month.
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