AI is changing the grid. Could it help more than it harms?

Massive data centers are pushing energy demand higher. Some people claim that AI will be a net benefit for the grid.

The rising popularity of AI is driving an increase in electricity demand so significant it has the potential to reshape our grid. Energy consumption by data centers has gone up by 80% from 2020 to 2025 and is likely to keep growing. Electricity prices are already rising, especially in places where data centers are most concentrated.

Yet many people, especially in Big Tech, argue that AI will be, on balance, a positive force for the grid. They claim that the technology could help get more clean power online faster, run our power system more efficiently, and predict and prevent failures that cause blackouts.

There are early examples where AI is helping already, including AI tools that utilities are using to help forecast supply and demand. The question is whether these big promises will be realized fast enough to outweigh the negative effects of AI on local grids and communities.

One area where AI is already being used for the grid is in forecasting, says Utkarsha Agwan, a member of the nonprofit group Climate Change AI.