Data center power struggle
Electricity has emerged as a key constraint on AI hyperscalers’ ambitious capital spending plans. Data centers consume a growing share of U.S. electricity. Despite rising investment in generation and transmission, capacity is struggling to keep up, and electricity prices are rising.
Electricity has emerged as a key constraint on AI hyperscalers’ ambitious capital spending plans. Data centers consume a growing share of U.S. electricity. Despite rising investment in generation and transmission, capacity is struggling to keep up, and electricity prices are rising.
The Vicic Wealth Management Team
April 14, 2026
Link to full article: Data center power struggle
Key points
- Data centers accounted for 4.4 percent of U.S. electricity
demand in 2023; that share could rise to between 6.7 percent
and 12 percent by 2028.
- Adding power plants to the grid takes more than twice as long as
building data centers, and while there are plenty of new power
projects in the pipeline, history suggests relatively few will reach
commercial operation.
- Rising demand from data centers is only one factor driving
U.S. electricity prices higher, but local backlash is nonetheless
growing and becoming a political issue.