On Wednesday the power flickered in homes from Washington DC to Chicago. The cause was a data center disconnecting from PJM — a massive power grid that connects 13 states including North Carolina, Virginia, New Jersey, and Michigan, a span that covers 67 million customers. The incident points to a larger problem with the compute warehouses fueling the AI boom: It’s physically and economically impossible to build power infrastructure fast enough to meet the demands of AI data centers and when problems occur, everyone will pay the price.
AI requires massive amounts of computer hardware to scale. That hardware is housed in data centers, and data centers demand shocking amounts of electricity. More data centers mean more demand on the grid which raises the costs of energy for everyone. This is one of the reasons people hate data centers and have begun to fight their construction.
To bypass the issue of grid demand, many data center builders have promised to power the buildings themselves. The problem with that plan is that it’s easy to build a warehouse full of GPUs. Building power plants and transmission lines to power those warehouses will take years and cost billions more than the data centers. A skilled and efficient builder can complete a data center construction in under a year. Building new energy generation to meet that data center's power needs could take a decade.
