More than two-thirds of the electricity sought for the US artificial intelligence boom is unlikely to materialize due to a proliferation of “phantom” projects and long-shot pitches.
- Wood Mackenzie expects utilities and grid operators to commit to just 28% of the 1,066 gigawatts requested for data centers — capacity equivalent to more than 1,000 traditional nuclear reactors.
- The inflated forecasts complicate grid planning and risk raising utility bills as infrastructure costs are passed on to customers.
- Developers are taking a shotgun approach to pitching projects as they seek ways get ahead in the AI build-out. But that raises the risk of overwhelming US grids and creating even more bottlenecks.
