Power shortfall THREATENS data center construction amid rising AI demand
Alex Epstein of the Center for Industrial Progress discusses how electricity shortages could constrain U.S. data center construction as demand from artificial intelligence increases. He argues that natural gas will likely provide most near-term power capacity, while nuclear energy could play a larger role over the longer term.
Center for Industrial Progress President and founder Alex Epstein told Fox Business that U.S. data center developers could face a 34% power shortfall through 2028, citing estimates from Morgan Stanley. He described electricity availability as one of the largest practical constraints on the country’s data center and artificial intelligence buildout.
Epstein argued that near-term demand for reliable power will primarily be met by natural gas because nuclear projects take longer to develop and wind and solar do not provide firm capacity on their own. He also said batteries could supplement natural gas or nuclear generation in some regions, while portraying AI as a technology capable of expanding access to personalized educational, professional and other forms of assistance.