AI's Power Thirst Is Straining the Grid

The boom in artificial intelligence is creating an energy crisis, as datacenters strain national power grids and compete with public needs for electricity.

Why it matters: The soaring energy demand from tech isn't just a technical problem; it creates a direct conflict between industrial growth and essential services like housing.

By the numbers: Data from the Dutch Central Bureau for Statistics reveals the scale of the growth.

• Just 45 large datacenters in the Netherlands now consume as much electricity as 1.9 million homes.
• Their share of national electricity use jumped from 1.2% in 2017 to 4.2% last year.
• Total power consumption by these centers has more than tripled since 2017, even as the number of facilities remained stable.

Between the lines: The public bears the financial burden through higher energy bills and the societal cost of funding massive grid upgrades, according to researchers at TU Delft.

What's next: Without a rapid expansion of power generation, governments will be forced to choose who gets priority on the grid — datacenters, new housing developments, or other industries.